The launch of Pelagic Credit Plc., marks a significant expansion of its ownership-led, disciplined maritime investment platform.
Cypriot shipowner and shipping fund manager, Pelagic Partners, has today announced the successful listing, and the first day of trading, of its new investment platform, Pelagic Credit, on the Oslo Stock Exchange.
Pelagic Credit represents a yield-orientated shipowning company focused on generating stable and predictable cash flows supported by long-term contracted employment of maritime assets, providing structured financing solutions to the maritime industry, supported by an initial capital raise of US$75M, anchored by Pelagic Partners.
Recent developments in the capital markets have reduced available options for parties looking to invest in a shipowning company that is backed by long-term employment contracts. Such companies protect investors from the broader volatility of shipping markets, whilst also generating consistent quarterly dividends.
Based on a strong deal flow pipeline, alongside the investment right of first refusal from affiliated companies, Pelagic Credit anticipates the successful deployment of the initial capital raise in the near term and expects to proceed with follow-on capital raises over the course of the year.
Pelagic Credit’s approach is founded on bareboat triple net leases, ensuring 100% revenue days, no operational cost exposure, and predictable cash flows, supported by an initial fleet of four vessels, all of which are chartered on five-year leases.
Tobias Backer, Chief Executive Officer, Pelagic Credit, said: “Pelagic Credit represents a unique product within public markets that is designed to bridge the current capital funding gap within the maritime industry, to support the demand for structured leasing transactions. By primarily focusing on counterparty-risk, rather than timing market volatility and residual value optimization, Pelagic Credit seeks to generate equity-like returns for lower-risk, debt-like transactions.”
Atef Abou-Merhi, Managing Director, Pelagic Partners, said: “At Pelagic Partners, we are literally invested alongside our partners in maritime performance. The launch of Pelagic Credit represents a significant milestone in Pelagic Partners’ growth and continues to build on our market aligned position as a diversified specialist within maritime and offshore sectors. Our investment strategy is underpinned by a partnership driven approach, supported by an ongoing strategy of co-investment which is driven by extensive heritage and expertise as shipowners.”
