Safe Bulkers raises €80.4 million in private placement

Nicosia, Cyprus. Cyprus-linked dry-bulk shipowner Safe Bulkers raised gross proceeds of €80.4 million through a private placement of 12 million new common shares.

Placement details

The company completed an accelerated bookbuilding process on Wednesday, placing the shares with selected investors at €6.70 each. Net proceeds will be available after transaction costs.

Safe Bulkers said the funds would strengthen liquidity, finance its existing newbuilding programme and potentially support additional newbuild orders or second-hand vessel purchases.

Shareholder participation

Chief executive and largest shareholder Polys Hajioannou participated in the placement. He subscribed for two million shares but was allocated 1.5 million after his order was scaled back to accommodate other investors.

At the offer price, his participation represented an investment of €10.05 million.

Newbuilding commitments

According to its latest financial results, Safe Bulkers had an orderbook of 10 newbuildings as of July 24: nine Kamsarmax vessels and one Capesize vessel, with deliveries scheduled through 2029.

Two Kamsarmax vessels will be capable of using methanol as fuel.

For nine vessels, excluding the separately financed Capesize, the company had paid $91.5 million and had remaining capital expenditure commitments of $277.2 million.

Of the outstanding amount, $61.4 million is due in 2026, $81.5 million in 2027, $42.8 million in 2028 and $91.5 million in 2029. The Capesize newbuilding is being financed through a finance lease under a bareboat charter arrangement.

The new equity can support commitments for vessels under construction while also allowing the company to consider further newbuildings or second-hand vessel purchases.