The launch of Pelagic Credit Plc, marks a significant expansion of its ownership-led, disciplined maritime investment platform.
Shipowner and shipping fund manager, Pelagic Partners, which is controlled by Lebanese national Atef Merhi Abou Merhi, has announced the successful listing, and the first day of trading, of its new investment platform, Pelagic Credit, on the Oslo Stock Exchange.
Pelagic Credit (PLGC) 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. This capital of PLGC is part of the overall strong $400m AUM of Pelagic Partners as a group.
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.
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.”
On March 16, Pelagic Partners team in Oslo had the honour of ringing the bell at the Oslo Stock Exchange to celebrate the listing of Pelagic Credit Plc, our new investment platform. This event occurred during the presence of all stakeholders who has worked thoroughly to make this a success.
This event shows that despite the daily challenges being faced by the Lebanese nationals, we always manage to demonstrate success abroad holding the name high.