On December 1st, the state-owned company Port of Tallinn issued bonds in nominal amount of EUR 60 million with a maturity of 2 years. The issue was subscribed in full by Pohjola Bank plc Estonian branch. The funds received will be used for financing the construction of new ferries.
“The funds received from the bond issue will be used by Port of Tallinn’s daughter company TS Laevad Ltd. for making payments to the companies building the new ferries,“ said Mr. Marko Raid, the temporary Chairman of Port of Tallinn’s Management Board. “In the coming term we have two possible ways for long-term refinancing of the ferry building. We can issue bonds in the international debt market or include long-term loan capital.”
By this December, TS Laevad Ltd. has paid to Polish and Turkish shipyards with different instalments the total of EUR 63.2 million. „The instalments are related to the different stages of the ferry building process. As of today we have paid more than half of the total acquisition cost,” added Raid.
TS Laevad Ltd. commissioned four new ferries from Polish Remontowa Shipbuilding and Turkish Sefine Shipyard, two ferries each. The launching of the ferries built in Poland will take place this winter and the launching of the ferries built in Turkey are planned to take place in spring, 2016.
The delivery of the ferries Tõll, Piret, Leiger and Tiiu, which will start operating on the lines between Estonia’s largest islands and the mainland, will take place in the second half of next summer.
TS Laevad Ltd. is a company owned by Port of Tallinn one hundred percent. Its purpose is to start operating the ferry traffic between Estonia’s largest islands (Saaremaa, Hiiumaa) and the mainland from October 2016. With the start of ferry traffic the estimated number of TS Laevad’s employees would be about 100 people, depending on the season. The estimated annual turnover will be up to EUR 30 million.