Wind vessel player Fred Olsen latest shipowner to test hot Oslo bond market
Cruise ship and offshore wind shipping group meeting investors to gauge interest in five-year deal
Bonheur, Fred Olsen’s cruise ship and wind power installation vessel holding company, is following a number of other shipowners in trying to sell bonds in Oslo.
The Oslo-listed group said it has asked investment banks DNB Markets and Pareto Securities to arrange a series of meetings with investors to drum up interest in a five-year series.
The “green” bond could then be sold on an unsecured basis, subject to market conditions, the company added. The target amount was not specified.
The company posted a much bigger profit in the second quarter as activity increased.
Net earnings were NKr554m to 30 June, versus NKr161m a year ago.
Revenue grew to NKr2.83bn from NKr2.38bn.
The group controls Fred Olsen Cruises, Fred Olsen Windcarrier (FOWIC), Global Wind Service (GWS) and Universal Foundation, with a 50% interest in United Wind Logistic (UWL) in Germany.
Busy bond market
Shipowners have been tapping a wide-open Oslo bond market to lower finance costs in a busy debt market.
Sale-and-leaseback specialist Ocean Yield, backed by American global investment company KKR, is meeting potential buyers to try to take advantage of strong investor sentiment, after deals by Klaveness Combination Carriers (KCC) and Kistefos last week.
Ocean Yield asked Arctic Securities, Danske Bank, DNB Markets and Nordea to arrange meetings with investors from Friday.
A new NKr750m five-year bond could be sold with a floating interest rate.
KCC sold a NKr500m sustainability-linked issue maturing in 2028, and Christen Sveaas’ shipping investment company Kistefos sold a NKr1.25bn issue expiring in 2028.
Car carrier Wallenius Wilhelmsen also sold $95m of sustainability-linked bonds earlier in August.