United Arab Shipping Company (UASC) has made its debut in the debt capital market with a finance deal for two modern containerships.
The Middle East owner said a US-based trust has issued $162m of Enhanced Maritime Trust Certificates (EMTC).
Besides US investors, the issuance attracted interest from Europe as well, UASC added.
Samir Sharma, vice president of project finance at UASC, said: “This award winning transaction is a landmark and precedent setting financing for UASC, marking its debut in the debt capital market and it creates a replicable model for future financings.
“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.”
The proceeds from the transaction will go towards the refinancing of two 2012-built 13,500-teu ships.
UASC is in the middle of negotiations over combining its business with Hapag-Lloyd, with shareholders set to vote on the deal in early June.
Basil Al Zaid, chief financial officer (CFO) of UASC, said: “We take great pride in the awards this transaction has received as a recognition of UASC’s commitment to excellence in all aspects of its business, including to seeking innovative solutions to the challenges posed by the current finance market.”
