Seaspan pockets $200 million from sustainability-linked bonds

 Seaspan Corporation, a wholly-owned subsidiary of Atlas Corp., has raised $200 million from new senior unsecured sustainability-linked bonds in the Nordic bond market.

Illustration; Image by Offshore Energy

The bonds will mature in February 2024 and bear interest at 6.5% per annum. The net proceeds from the bond issue will be used for general corporate purposes, which may include repayment of debt.

“We are pleased to continue to access the unsecured credit markets with this issuance and important entry into the Nordic bond marketplace,” Bing Chen, President and CEO of Atlas, commented.

“The strong global investor demand demonstrated significant interest in our commitment to ESG and heightened environmental objectives combined with our strong financial performance and consistent growth. Atlas is focused on generating quality growth, combined with prudent financial discipline and stringent capital allocation which is supported by this issuance. We continue to improve our capital structure as we remain committed to our longer-term objective of reaching an investment grade credit rating.”

DNB Markets and Fearnley Securities acted as Joint Bookrunners for the offering.

The Hong Kong-based containership operator closed a $200 million sustainability-linked loan inspired by the Poseidon Principles framework in October 2020.

The voluntary framework developed by the banking sector aims to accelerate the implementation of the shipping sector’s green agenda in line with the International Maritime Organization’s (IMO) 2050 decarbonization targets.

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The $200 million term loan has a tenor of six years and is part of the company’s expanded financing program.

The program is comprised of a $300 million revolving credit facility and approximately $1.5 billion of term loan commitments, with staggered maturities between 2024 and 2026.