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Ch. Megalou: Emphasis on the importance of the maritime bond market as a development tool

The importance of the shipping bond market as a development tool, pointed out the CEO of Piraeus Bank, Christos Megalou from the podium of the 12th Capital Link Shipping Forum, emphasizing that there is significant investment interest, both from institutional and private investors, in one year of operation market and its prospects are strong.

Mr. Megalou noted that the current situation has temporarily stopped the activity, in general in the corporate bond market, which especially since last year and the beginning of 2022, had a strong momentum. The interest remains intense and the activity will recover as soon as the conditions allow, Mr. Megalou stressed, urging the shipping agents who participated in the Forum to prepare to take advantage of the window of opportunity that will be created in the market.

The CEO of Piraeus Bank referred to the mobility that is presented in the corporate bond market of the Athens Stock Exchange in the last five years, where 23 issues have been made, raising funds over 4 billion euros, with a large participation of investors, institutions and individuals who have absorbed 60% of demand. 2021 was a record year, with seven editions that raised 1.4 billion euros while already in the first two months of 2022 two editions were made.

Piraeus Bank has an active role in the corporate bond market, with a market share of 30% in terms of both demand and distribution of issues, while it places special emphasis on the shipping bond market, having pioneered the opening of this market and contributing in the configuration of the structure and the process that presented peculiarities due to the specific branch.

The three issues of shipping bonds – from Costamare, Capital Product Partners, Safe Bulkers – were made by large companies, listed on the US stock market, with strong fundamentals and prospects and raised funds of 350 million euros in less than a year, in high demand which led to record overcrowding among all ATHEX publications, said Mr. Megalou. In these issues, Piraeus Bank had a share of 40% to 45% in terms of demand and distribution and operated in all three as a Joint Bookrunner, Lead Manager & Issue Advisor.

As Mr. Megalou pointed out, the advantages of shipping bonds for issuers are, among other things, the diversification of funding sources that improves their terms and flexibility, the fact that securities are usually issued without collateral, allowing additional collateral financing, the way of repayment that maximizes the flexibility and the improvement of cash flows and liquidity, the attractiveness, both for institutional and for individuals that leads to the expansion of the investment base.

At the Capital Link Shipping Forum, participating in a panel on banking financing in shipping, Konstantinos Petropoulos, General Manager, Structured and Shipping Finance of Piraeus Bank, stated that Piraeus Bank in the last five years has proceeded with new disbursements of loans over 3 billion. In the shipping industry, of which $ 1.2 billion in 2021. “In a very demanding business environment, we have established a strong presence, offering shipping companies competitive financing solutions and a range of integrated services,” he said. Mr. Petropoulos.

Source: Capital

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