Dubai-based container shipping firm United Arab Shipping Company (UASC) has completed a series of transactions that resulted in the issuance by a U.S. based trust of USD 162 million of Enhanced Maritime Trust Certificates (EMTC).
The proceeds from the EMTCs were used to finance the debt portion of two 2012-built 13,500 TEU container vessels, according to the company.
The EMTC issuance received strong interest from institutional investors in Europe and the United States, and the transaction is expected to facilitate repeat capital market issuances by UASC that will “afford it access to a broader investor base in the Investment Grade markets, a critical component of UASC’s strategy to diversify its funding sources for its currently scheduled and anticipated long term capital expenditure program.”
“We are confident that the company will continue to tap into this market in future for its financing needs as it provides access to a new pocket of liquidity for the financing of assets over a longer portion of their life cycle,” Samir Sharma, Vice President – Project Finance of UASC, said.
UASC is currently in talks with its German counterpart Hapag-Lloyd AG (HL) regarding a potential combination of their respective container shipping operations.
The business combination agreement, which was announced in April, is expected to be put to a vote on June 2.