MPC Container, an Oslo-listed shipowner, has successfully raised $125 million through the issuance of a sustainability-linked bond maturing in 2029. The company, which does not operate ships directly, increased the initial bond offering by 25% due to strong investor demand, having initially aimed to raise $100 million. The bond issue was described as significantly oversubscribed.
The senior unsecured bonds will pay an annual coupon of 7.375%. MPC has applied to list the bonds on the Oslo Stock Exchange. Proceeds from the bond will be used for various corporate purposes, including refinancing existing debt and acquiring maritime assets.
A portion of the funds is believed to be allocated towards MPC’s recent acquisition of four 3,800 twenty-foot equivalent unit (TEU) vessels from Belgium’s Delphis, part of the CMB Group. Industry sources suggest that these vessels include the DETROIT EXPRESS, LIVORNO EXPRESS, GENOA EXPRESS, and BARCELONA EXPRESS, which are valued at a combined $180 million.
Arctic Securities and Pareto Securities served as global coordinators and joint bookrunners for the bond issue, while Clarksons Securities and Fearnley Securities acted as co-managers.
This bond issuance follows a similar sustainability-focused financing deal by MPC earlier this year. In April, the company secured a $55 million financing agreement with Deutsche Bank and Sinosure, covered by export credit agencies, to fund two dual-fuel methanol newbuildings, set for delivery in 2025. This financing agreement falls under Deutsche Bank’s Sustainable Finance Framework and will terminate in 2036.
