Star Bulk Pioneers Green Loan to Retrofit 50 Scrubbers

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The Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes has announced its entry into a $310 million loan agreement.

Agreement Specifications

The agreement includes a $70 million tranche (the “Green Loan Tranche”) that will exclusively finance the procurement and retrofitting of scrubbers for up to approximately 50 vessels in Star Bulk’s fleet. DNB Bank ASA (“DNB”), acted as the Mandated Lead Arranger, Facility Agent and Coordinator, along with ABN AMRO Bank N.V (“ABN”), BNP Paribas (“BNP”), Danish Ship Finance A/S (“DSF”) and Skandinaviska Enskilda Banken AB (“SEB”) as Mandated Lead Arrangers.

The remaining $240 million were drawn on September 28, 2018 and refinanced in full a group of 26 vessels, namely 4 Newcastlemax, 4 Capesize, 2 Post Panamax, 14 Kamsarmax and 2 Supramax vessels.

Green Loan Tranche

The Green Loan Tranche has been certified by DNV GL Business Assurance Services Limited (“DNV GL”) to be aligned with the Green Loan Principles. The completion of this financing is an important milestone for Star Bulk and its lending partners, who are pioneering sustainable Green Loans for dry bulk shipping investments, which aim to promote maritime emission reductions and compliance with the 2020 IMO regulations.

The Green Loan Tranche has a margin of 280 basis points over LIBOR and an amortization profile of 4.5 years.

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Source: Star Bulk

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