Safe Bulkers has raised €80.4 million from its private placement, giving the Cyprus-linked dry-bulk shipowner additional room to fund its sizeable newbuilding programme while keeping the option of further vessel purchases firmly on the table. 

The company completed the accelerated bookbuilding process on Wednesday, placing 12m new common shares with selected investors at €6.70 each. The figure represents gross proceeds, with the net amount to be available after transaction costs. 

The deal follows the fundraising plan announced earlier on Wednesday, when Safe Bulkers said it intended to use the proceeds to strengthen liquidity, finance its existing newbuilding programme and potentially support further newbuild orders or second-hand vessel purchases. 

Chief executive and largest shareholder Polys Hajioannou also took part in the placement, although his final allocation was smaller than initially planned. 

Hajioannou had subscribed for 2 million shares but was ultimately allocated 1.5m, after his order was scaled back to make room for other investors. At the €6.70 offer price, his participation represents an investment of €10.05m. 

The fresh capital comes as Safe Bulkers is already well into a significant fleet renewal programme. 

According to its latest financial results, the company had an orderbook of 10 newbuildings as of July 24, comprising nine Kamsarmax vessels and one Capesize, with deliveries stretching through 2029. Two of the Kamsarmax vessels will be capable of using methanol as fuel. 

For nine of those vessels, excluding the separately financed Capesize, Safe Bulkers had already paid $91.5m, leaving $277.2m in remaining capital expenditure commitments. 

Of that amount, $61.4m is due during 2026, followed by $81.5m in 2027, $42.8m in 2028 and $91.5m in 2029. The Capesize newbuilding is being financed through a finance lease under a bareboat charter arrangement. 

That makes the new equity particularly relevant to the company’s investment plans. While part of the proceeds can help meet commitments already attached to vessels under construction, Safe Bulkers has deliberately left its options wider than the current orderbook. 

The reference to possible additional newbuildings and second-hand acquisitions means the company could also move on opportunities that emerge in the dry-bulk market, rather than limiting the funds to ships already contracted. 

The fundraising comes alongside a broader effort to replace older tonnage with newer and more efficient vessels. Safe Bulkers had a fleet of 46 vessels at the end of June, two of which were held for sale, as the company continued to dispose of older ships while bringing newer tonnage into the fleet. 

Safe Bulkers, led by Cypriot shipowner Hajioannou, is also one of the largest shipowners under the Cyprus flag and maintains its operational presence on the island through Safe Bulkers Management in Limassol. 

The placement also comes only months after Safe Bulkers became the first shipping company to have its common shares trading on both the New York Stock Exchange and Euronext Athens, with the Athens listing beginning in June. 

The newly issued shares are expected to settle through Euronext Securities Athens on September 11, before becoming available for trading on Euronext Athens on September 14. 

The company said the exact date on which the shares will be credited to investors’ securities accounts, as well as the final commencement date for trading in Athens, will be confirmed in a subsequent announcement. The new shares will also be listed on the NYSE.  

Meanwhile, trading in Safe Bulkers shares on Euronext Athens resumed at 3.30pm on Wednesday, September 9, after being temporarily suspended while the private placement was completed.