Bermuda-based ship owner and charterer SFL Corporation has placed the four-year $150 million senior unsecured sustainability-linked bonds.
The sustainability-linked bonds are due April 19, 2028.
They will pay a coupon of 8.25% per annum, and net proceeds will be used to refinance existing bonds and for general corporate purposes. An application will be made for the bonds to be listed on the Oslo Stock Exchange, the company said.
Sustainability bonds raise funds for new and existing projects with environmentally sustainable purposes. The company has not specified whether it will use a portion of these funds for eco-friendly vessel acquisitions.
Last month, SFL said it would acquire three new LR2 product tankers for $230 million. The vessels, currently under construction in China, will have the latest eco-design features.
In related news, SFL Corporation welcomed the fourth LNG dual-fuel car carrier, Thor Highway, in late March 2024.
Established in 2003, SFL has developed from a pure tanker-owning company to one of the world’s largest ship-owning companies, with investments in the tanker, bulker, container and offshore segments.