Rickmers Maritime Trust has established a Singapore $300 million (about US$240.5 million) corporate bond program to fund capital expenditure.
The net proceeds from the issue of multi-currency, medium term notes will also be used for general corporate purposes, including refinancing of the working capital of the Singapore-based trust and its subsidiaries.
“The establishment of this program further diversifies our access to funding across various sources, and enables us to issue debt in different tenors,” said CEO Thomas Preben Hansen, in a written statement.
He also noted that the program provides flexibility to tap the market according to corporate needs.
“On top of our move to strengthen our balance sheet over the past quarters, this better positions us to capitalize on growth opportunities as and when they occur,” Hansen said.
Rickmers Maritime boosted third quarter profit by almost 60 percent from a year ago to $13.7 million, driven mainly by lower financing charges as it paid down loans. The company, in which the Hamburg, Germany-based Rickmers Group has a significant minority stake, has 16 container ships on long term fixed rate charters to leading ocean carriers.