Greek shipping company, Capital Maritime & Trading, owned by Vangelis Marinakis, will follow in the footsteps of Costamere and is planning to issue a large sized bond on the Athens bourse, indicating that something has changed in the Greek market after years of being off investor radars.
Capital Maritime & Trading is listed on the New York Stock Exchange and has 80 vessels at sea, making it one of the largest companies in the world in its field. The initial preparations for the issuance of a Capital Maritime bond started about three months ago, while the issue is scheduled for autumn. It will be bigger than that of Costamare, as sources with knowledge of the subject matter point out that "it will exceed 100 million euros".
It is understood that a new market is slowly emerging on the Greek stock market, as it acquires a tangible relationship with Greek shipping, a global force, controlling about 20% of the world market. The road opened with the bond of Costamare Participations PLC, 100% subsidiary of Costamare Shipping Co S.A., owned by the Kostis Konstantakopoulos family, as the market broadens and attracts more companies.
The bond issued by Costamare Participations PLC exceeded all expectations. The company sought 100 million euros, though offers reached 655 million euros, while the interest rate was at the lower end of the range at 2.70%.
Although a regular listing of a shipping company has not yet taken place on the Greek stock exchange, despite efforts from the Athens stock exchange in the last 15 years and the changes to the institutional framework, it seems that bond issues are gaining ground, as Greek-owned shipping companies are in constant search of new funding.
According to Business Daily sources, there are more Greek shipping companies listed on the NYSE "that have shown initial interest and asked about the procedures and details."
More on Capital Maritime
Vaggelis Marinakis' Capital group has a mixed fleet of over 80 ships, including tankers, container ships and dry cargo. At the same time, the company is pushing ahead with a large investment program exceeding $200 million.
It is the greenest investment project in the world, as it involves the first tankers in international shipping, which will utilize alternative energy sources (alternative maritime power-AMP) such as electricity and gas. The four MR product carriers will be built by Capital Maritime & Trading, at the Hyundai Mipo Dockyard (HMD) shipyards with the option of two more being built.
The six tankers carry the latest innovations in their propulsion system, in line with what Capital Maritime founder Vangelis Marinakis says is the need to turn to green investments in shipping, with the aim of reducing carbon dioxide emissions (CO2) and tackling the effects of climate change.
The tankers under construction will be "LNG ready" which means that they will also be able to use as fuel liquefied natural gas (LNG). At the same time, they will be equipped with an "Alternative Maritime Power" system, which allows the ship, when anchored in a port, to be supplied with electricity from the port network, while its main and auxiliary engines are switched off. They will also be able to accept a propulsion system using wind energy (wind rotors).