CONTSHIPS Logistics, the largest owner of feeder containerships in the 900 teu to 2,000 teu segment, has raised $75m from a so-called ‘tap’ issue of its outstanding sustainability-linked Nordic bond.

The Nikolas Pateras-led owner of 38 feeders raised an initial $100m from the bond earlier this year.

In a sign of high demand, the new five-year notes will be issued at 99% of par compared with 98% that it achieved in the initial offering.

One source with knowledge of the transaction said that Contships’ initial target of $50m was covered more than twice over, but it was decided to upsize the deal by only 50%.

Arctic Securities and Fearnley Securities acted as joint bookrunners and Clarksons Securities acted as co-manager in the placement of the tap issue.

The Greece-based owner has made no secret of its interest in expansion and has circulated a project for up to 20 newbuildings among various shipbuilders.

However, Pateras has already said that current building quotes are at least 20% too high.

“The market is flying and there are not many lucrative deals around for secondhand buyers,” said Pateras. “We are going to be patient.”

The net proceeds from the tap issue may be applied to a variety of corporate uses, but also add to a significant company war chest that already includes part of the funds raised from the initial issue, as well as about $100m from vessel sales.

He confirmed that Contships has just agreed to sell 18-year-old, 1,118 teu Contship Oak (IMO: 9373917) to Mediterranean Shipping Co for $11.5m.

The deal highlights the continuing interest for feeders among the major liner companies, which is often linked with a good outlook for tonnage providers in the charter market.