Seaspan pockets $750 million from “blue transition” bonds

Seaspan Corporation, a subsidiary of Atlas Corp., has raised $750 million in senior unsecured notes to help fund projects that “would reduce the environmental impact of its fleet.”

As informed, the deal is worth $250 million more than it was originally planned. The notes will mature in 2029 and are expected to bear interest at a rate of 5.50% per year.

Seaspan is labeling the transaction “blue transition bonds” as part of a plan to become a more eco-friendly operator.

Proceeds from the bonds may be used to fund projects such as building new vessels that use alternative or low-carbon emission fuel sources like liquefied natural gas, according to Seaspan’s blue transition bond framework.

“In the last twelve months, we have issued inaugural unsecured credit offerings in three different markets, making significant progress on our communicated path to investment grade,” Graham Talbot, CFO of Seaspan, stated.

“This transaction, highlighted by the 50% upsizing of the offering, demonstrates the growing confidence of institutional investors and rating agencies,” Bing Chen, Chairman, President and CEO of Seaspan, commented.

Through the issuance of Blue Transition Bonds, the company intends to showcase its efforts to improve the environmental performance of its fleet and contribute to the path towards decarbonization of its industry.

Seaspan’s operational fleet consists of 131 vessels with additional 55 vessels under construction.

In October 2020, the containership operator closed a $200 million sustainability-linked loan inspired by the Poseidon Principles framework.