- Hapag-Lloyd AG plans to issue a sustainability-linked corporate senior note in the amount of EUR 300 million.
- It will comply with the principles of the International Capital Market Association (ICMA).
- To this end, a consortium of banks was engaged today to hold meetings with potential investors in the near future.
- At the same time, the planned transaction is to be verified by an independent expert in the form of a secondary party opinion of the DNV.
A recent Hapag-Lloyd press release reveals that Hapag-Lloyd AG plans to issue a sustainability-linked senior note.
The planned transaction
- The planned transaction is to be verified by an independent expert in the form of a secondary party opinion of the DNV.
- The proceeds of this potential note issuance will be used to redeem early and in full the existing EUR bond (ISIN XS1645113322 and ISIN XS1645114056) in the amount of EUR 300 million and maturing in 2024.
- If the new sustainability-linked corporate senior note is successfully placed, the existing note is expected to be redeemed on 7 April 2021 at the fixed price of 102.563%.
Sustainability-linked senior note
The sustainability-linked senior note is associated with a clearly defined sustainability target: By 2030, the CO2 intensity of Hapag-Lloyd’s own fleet is to be reduced by 60% compared with 2008, the reference year of the International Maritime Organization (IMO).
Hapag-Lloyd aims to achieve this ambitious goal by purchasing new and efficient ships, phasing out old ships, using alternative fuels and introducing additional measures to reduce emissions.
Lower CO2 emissions
The lower CO2 emissions of its own fleet are to be measured and annually disclosed according to the so-called Average Efficiency Ratio (AER) indicator: For Hapag-Lloyd’s own fleet, this was 11.68 in 2008 and is now expected to fall to 4.67 by 2030.
The AER provides information on CO2 intensity measured in grams of CO2 per tonne-mile (gCO2/dwt*nm).
Key highlights
Hapag-Lloyd AG will continue to lower its carbon footprint and will be transparently measured against it – year after year.
With new sustainability target, it will set a clear goal for the level of CO2 intensity by 2030.
This will likewise be an integral part of its expanded sustainability strategy, which it will be publishing later this year.
At the same time, with the planned sustainability-linked senior note, it would like to gain additional momentum in our green financing activities.
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Source : Hapag-Lloyd
