Baleària has signed the first sustainable financing agreement in the Spanish shipping sector with a loan of €80M (US$88M), says an article published in Riviera.
Based on environmental indicators
The funding was calculated using the interest rate based on two environmental indicators: the number of eco-sustainable vessels and the number of vessels with electrical connections when docked, used by the company.
CaixaBank has led the syndicated loan, acting as financing co-ordinator, insurer and sustainability agent. Abanca, Banca March, BBVA, Cajamar and Santander have also participated in the funding.
Investment in electrical connection
Gas, hydrogen, and electric battery-powered ships are considered eco-sustainable, as they produce lower emissions than conventional or clean fuels.
Baleària said it seeks to lead the transformation of Spain’s shipping sector by reducing pollution through using cleaner energies. It has nine dual-engine boats that use gas and it aims to expand this eco-efficient fleet by at least three more units over the next five years.
To reduce emissions, both on journeys and in ports, Baleària has begun to invest in providing vessels with an electrical connection to the port when they are docked to enable them to remain operational without using fuel.
In 2021, Baleària added Eleanor Roosevelt, the world’s first fast ferry with dual gas engines, to its fleet, which also has an electrical connection to the port.
This enabled it to make the first carbon-free journey of any ship in Europe in its first month of operation using biomethane. The shipping company aims to have nearly 15% of its fleet utilising these electrical connections by 2026.
Validation by a report
The funding came with a report by Anthesis Lavola, which has validated the materiality and suitability of the indicators and their goals, thus meeting the Sustainability-Linked Loan Principles issued by the Loan Market Association. Additionally, KPMG Abogados acted as legal advisor to the syndicate of funders.
Baleària said in a statement, “CaixaBank is one of the financial institutions most committed to sustainability. Through its initiatives, the bank is supporting environmentally friendly initiatives and projects that contribute to preventing and mitigating climate change and to encouraging social development and the transition to a low-carbon economy.”
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Source: Riviera
