An investment trust lending to privately-owned shipping companies, Blue Ocean Maritime Income (BMAR), is looking to raise USD 250 million.
Namely, the firm revealed that it is to launch an initial public offering (IPO) on the London Stock Exchange by way of a placing and offer for subscription targeting the issue of 250 million ordinary shares at an issue price of USD 1.00 per share.
The UK-based company said that its objective will be to generate long-term, sustainable shareholder returns, predominantly in the form of income distributions, from direct lending and similar financing opportunities to vessel owners and operators, and other maritime businesses.
BMAR said it expects to generate annual returns of between 8-10%, with the company looking to generate a 7% yield two years after launch. It will pay 3% in year one.
The company’s investments will be overseen by Svein Engh, Managing Director of EnTrust Permal and Portfolio Manager of Blue Ocean Maritime Income. The Blue Ocean strategy has already deployed over USD 300 million since September 2016, financing 55 vessels.
“Shipping is a large and diverse industry, which created many significant investment opportunities. While we continue to see capital inflow to direct lending vehicles and investment funds in sectors such as real estate or infrastructure, the maritime financing sector is in a different position; values are low, and the competition is limited, resulting in attractive risk-adjusted yield opportunities,” Engh said.
“As a non-bank lender, we can construct our portfolio in a countercyclical manner in the privately-owned segment of the shipping market.”