Financing to Drive Carrier’s Green Transition
By Simon West
Höegh Autoliners has begun trading on the Euronext Growth stock exchange in Oslo, as the Norway-based breakbulk specialist aims to raise new finance to expand its fleet and drive its green fuels transition.
The group, which began trading on Nov. 29, is seeking to raise 1.2 billion Norwegian crowns, or about US$133 million, through a private placement, a figure that could rise by about US$18 million should the company choose to exercise its so-called greenshoe option.
Some 57 million new shares had been issued, the company said, with the initial offering attracting “strong interest” from investors. Following the listing, the company’s majority shareholder, shipping group Leif Höegh, saw its stake drop from 60.5 percent to 48.4 percent.
‘Path to Zero’
Höegh Autoliners said the listing had enabled it to secure the financing to build the first four of a series of its new Aurora-class vessels, a zero-carbon-ready car carrier with a capacity of 9,100 car equivalent units, or CEUs.
The Aurora vessels, the largest of its kind in the world, will be capable of running on conventional fuels including liquified natural gas, or LNG, as well as zero-carbon fuels such as green ammonia.
In October, the ship operator said it had signed a letter of intent with Chinese shipbuilding group China Merchants Heavy Industry to build the multi-fuel vessels, with the first two units ready for delivery in the second half of 2024.
Oslo-headquartered Höegh Autoliners operates mainly within the roll-on, roll-off sector, operating a fleet of 40 pure car and truck carriers with capacities ranging from 2,300 to 8,500 CEUs. The company also transports project and out-of-gauge cargo, carrying almost 6 million cubic meters of high-and-heavy breakbulk cargoes every year.
The shipper, targeting net-zero emissions by 2040, has already cut its carbon intensity by 37 percent, and is in line to meet the IMO’s target of at least 40 percent by 2030.
“Listing on Euronext Growth represents a strong vote of confidence in the company’s long-term commitment and robust business model,” said CEO Andreas Enger. “The funds raised will enable us to accelerate our path to zero, expand the fleet and strengthen our market position in delivering low-to-zero emission transportation services to customers.”
In related news, Höegh LNG, one of the world’s largest floating storage and regasification units, or FSRUs operators, has tabled a buyout proposal for Höegh LNG Partners.
The Oslo-based LNG infrastructure firm is looking to acquire through a wholly-owned subsidiary all publicly-held shares of the Bermuda-listed Höegh LNG Partners in exchange for US$4.25 per share.
If an agreement is reached, the deal would be subject to regulatory and shareholder approval, Höegh LNG said in a filing.
