Cypriot shipowner lists new yield-focused maritime firm in Oslo

Pelagic Partners has announced the successful listing, and first day of trading, of its new investment platform, Pelagic Credit, on the Oslo Stock Exchange, marking a significant expansion of its ownership-led, disciplined maritime investment platform.

The Cypriot shipowner and shipping fund manager said Pelagic Credit is a yield-orientated shipowning company focused on generating stable and predictable cash flows, supported by the long-term contracted employment of maritime assets.

At the same time, it is designed to provide structured financing solutions to the maritime industry, backed by an initial capital raise of $75 million, anchored by Pelagic Partners.

The company said recent developments in the capital markets have reduced the available options for parties looking to invest in a shipowning company backed by long-term employment contracts. In turn, such companies protect investors from the broader volatility of shipping markets, while also generating consistent quarterly dividends.

Given that, and based on a strong deal flow pipeline, alongside the investment right of first refusal from affiliated companies, Pelagic Credit said it anticipates the successful deployment of the initial capital raise in the near term.

It also expects to proceed with follow-on capital raises over the course of the year.

Pelagic Credit’s approach, meanwhile, is founded on bareboat triple net leases, ensuring 100 per cent revenue days, no operational cost exposure, and predictable cash flows.

This is supported by an initial fleet of four vessels, all of which are chartered on five-year leases.

Chief Executive Officer Tobias Backer said Pelagic Credit “represents a unique product within public markets” and 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”, he said Pelagic Credit seeks “to generate equity-like returns for lower-risk, debt-like transactions”.

Managing Director Atef Abou-Merhi, for his part, said that at Pelagic Partners, “we are literally invested alongside our partners in maritime performance”.

He added that the launch of Pelagic Credit “represents a significant milestone in Pelagic Partners’ growth” and continues to build on its market-aligned position “as a diversified specialist within maritime and offshore sectors”.

“Our investment strategy is underpinned by a partnership driven approach,” he said, adding that it is supported by “an ongoing strategy of co-investment which is driven by extensive heritage and expertise as shipowners.”