Although interest rates have experienced a slight upward rise this week, they remain at near historic lows. The Fed will begin to taper this year but has pushed off rate increase until next year. Investor appetite for yield remains strong.

Having disposed of its tanker fleet in a merger with Diamond S Shipping back in 2019, Capital Product Partners L.P. (“CPLP”) is today in an enviable position owning a fleet of 16 vessels, including 12 Neo-Panamax container vessels, three Panamax container vessels and one Capesize bulk carrier.

Last month, Hemen Holding Limited, a company affiliated with John Fredriksen, acquired additional shares in Avance Gas Holding Ltd which brought its aggregate shareholding, including shares controlled by its affiliate Frontline Ltd, to 25,825,615 shares equaling 33.35% of the shares outstanding thereby triggering a mandatory offer obligation under the Norwegian Securities Trading Act.

In support of Marine Money Virtual Climate Week Forum and UN Climate Week, Marine Money brings you Green & Sustainability-linked Financing for Shipping: Understanding the Requirements, Benefits and Costs of Responsible Finance. From second party opinions to Key Performance Indicators, this report helps borrowers understand the key considerations of this fast-growing market for capital.

Numeracy is not one of our strengths, but the numbers incorporated in the article’s title struck a chord. The first number represents the number of newbuilding containerships Seaspan Corporation has ordered since December 2020 and the second the total TEU capacity of those vessels.

Another Fredriksen company has been busy as of late. With the resolution of the Seadrill obligations, SFL Corporation was back doing what it does best, wheeling and dealing but of course all on the up and up. It was a very busy month for the team.

When one exits, another enters. Last Wednesday, Western Bulk Chartering AS successfully concluded a private placement of 4.34 million of its shares at NOK 30 per share for a total deal size of NOK 130.2 million (~$15 million). The offering was comprised of a primary offering of 3.95 million new shares which raised gross proceeds of NOK 118.5 million and 390,000 over-allocated additional shares representing NOK 11.7 million.

​

Having successfully concluded its IPO back in May, Taylor Maritime Investments Limited (“TMI”) quickly returned to the market placing new shares to fund its acquisition pipeline, which according to its IPO prospectus, is estimated to be a total deal value of $500 million based upon executable deals within the next 12 months or less.

One of the greatest competitive advantages a company can have is ready access to competitively priced capital and that’s where John Fredriksen comes in. Back in February, Golden Ocean Group Limited entered into agreements to acquire 15 modern dry bulk vessels and three newbuildings for a total consideration of $752 million (the “Vessel Acquisitions”) from affiliates of Hemen Holding Ltd., the company’s largest shareholder.

The trend toward privatization continues as private equity infrastructure funds see opportunity in shipping. Their apparent unlimited access to capital is most welcome but the questions of cost and investment horizon linger. Permanent capital it is not, long-term perhaps.

In 2020, our nation dealt with 22 natural disasters that cost at least one billion dollars each — an unprecedented number. When the ecological and financial impacts of climate change are this apparent, it’s no surprise that the climate crisis has become a top-of-mind issue for NPO, corporate and political leaders and in even the most average American’s day-to-day life.