The shipping company Vogemann based in Hamburg, Germany issued its first digital security with the help of blockchain technology.
The total issued volume for the security token offering (STO) is 50 million US dollars (USD). The securities sales prospect was approved by the FMA Financial Supervision Authority Liechtenstein on July 3 and the sale had started on July 9.
In its mission to lower CO2 emissions and transition to an environmentally sustainable model, the Vogemann shipping company decided to raise capital for the acquisition of “green” bulker transports.
Digital Security Issuance for Green Ship Tokens
According to the sales prospect, the raised capital will be used to purchase bulk carriers with their own board cranes. Bulkers transport raw materials such as grain, fertilizer, coal, ores, minerals, steel and forest products – this type of transport generating over half of the global maritime transport.
Jens-Michael Arndt, managing partner of H. Vogemann Reederei GmbH & Co. KG, explains the acquisition profile:
“We are particularly targeting so-called ‘Green Ships’. They offer the ideal combination of increased energy efficiency with reduced emission values. This not only makes them more environmentally friendly, but also ensures lower fuel costs and higher charter rates”.
According to Vogemann, worldwide there are currently only two bulkers in the handy-size segment up to 40,000 tons, which meet the highest requirements for CO2 emissions. Both ships of the so-called ‘Green Dolphin’ class were built for Vogemann and were put in service in 2019.
Vogemann’s decision to pursue a digital security issuance aligns with the company’s plan to invest in future-oriented ships.
Markus Lange, managing partner of Vogemann had further reinforced the company’s willingness to try new financing options and the emergence of STOs became a realistic alternative now:
“We have always been open to new financing methods,” “A security token offering is the logical continuation of our financing strategy.”
The digital security was issued under the name Green Ship Tokens. An investment in Green Ship Tokens brings together environmental protection and investment opportunities in the best way.
What is the Green Ship Token?
The Vogemann Green Ship Tokens are digital securities in the form of tokenized profit participation rights with a fixed annual return. The raised capital is invested in new or modern used bulkers, which are employed in the company’s operations.
According to the security offering documentation, the tokenized participation rights exclusively grant contractual creditor rights to the bearer and explicitly no shareholder rights.
From a technical point of view, the issuance of the tokens took place on the Ethereum blockchain. Investors benefit from a fully digitized investment process. While interested investors only need an internet connection to participate, they are still subject to a verification process as accredited investors in accordance with the applied law.
The issuance and investing platform www.greenshiptoken.com is based on Ive.One, which was developed by the Frankfurt-based FinTech Agora Innovation GmbH for digital security issuance with the help of blockchain technology. The capital market regulatory support is provided by attorney Lutz Auffenberg, LL.M. from Fin Law, Frankfurt, a law firm specialized in the tokenization of financial instruments.
Key data of the Green Ship Token issuance:
50 million tokens worth USD 1 per token
8% p.a. + plus profit sharing of 50/50 between investors and issuer, insofar as the economic success of the issuer permits.
Minimum investment amount:
Up to 15 years
Vogemann Green Ship Token, Hamburg
Neofin Hamburg GmbH, Hamburg
Trailblazing the Digital Issuance Process
The issuance of the Green Ship Token to raise capital for investment purposes represents a monumental step and could be an example other corporations may follow.
The security issuance is taking place within the applied securities law and is subject to certain verifications, nonetheless the digital issuance process makes it much easier both for issuers and investors.
It’s not yet a fully “open” financing alternative as a couple of countries are barred from participating – most notably USA and China. Still, the issuance on the Ethereum blockchain opens up the investment opportunity to many more investors and enables a much easier trading process.
Will this open the gates for other companies to follow down the same path or is the digital issuance process at this stage not attractive enough for issuers yet?