Seaspan completes upsized US$750 million offering of blue transition bonds
Canadian container ship owner and operator, Seaspan Corporation has successfully closed its previously announced issuance of US$750 million in senior unsecured notes, upsized from the original offering size of US$500 million.
The Notes will mature in 2029 and will accrue interest payable semiannually at a rate of 5.50% per year, according to a statement.
Seaspan said it intends to allocate the net proceeds of the offering to acquire, finance or refinance, in whole or in part, certain new and/or existing eligible projects consistent with Seaspan’s Blue Transition Bond Framework.
The transaction furthers Seaspan’s sustainability efforts, advances Seaspan’s sustainability-linked capital structure, and adds liquidity to support additional growth opportunities, according to an announcement.
“This transaction, highlighted by the 50% upsizing of the offering,” commented Bing Chen, Chairman, President and CEO of Seaspan.
The notes are being issued in connection with Seaspan’s Blue Transition Bond Framework, which is designed to align with the guidelines presented by the International Capital Market Association’s Green Bond Principles 2021 (GBP) and is informed by Climate Transition Finance Handbook 2020 (CTFH).
The GBP is voluntary process guidelines for best practices in financial instruments that enable capital-raising and investment for new and existing projects with intended environmental benefits, while the CTFH acts as additional guidance for issuers raising funds for transition-related purposes.
“In the last twelve months, we have issued inaugural unsecured credit offerings in three different markets, making significant progress on our communicated path to investment grade,” noted Graham Talbot, CFO of Seaspan.
Through the issuance of Blue Transition Bonds, Seaspan announced it intends to showcase its efforts to improve the environmental performance of its fleet and contribute to the path towards decarbonization of its industry.
Source : Container News