Standard Chartered led on a $89.6 million sustainability linked loan on behalf of Vista Shipping for the purchase of its first pair of LNG dual-fuelled vessels, reports Bunkerspot.
About the loan
Standard Chartered acted as the Facility Coordinator, Sole Sustainability Co-ordinator, Mandated Lead Arranger and Facility and Security Agent for the transaction. In a statement, the bank said that it had also assisted Vista Shipping, a joint venture between Hafnia and CSSC Shipping Hong Kong, in securing a second party opinion on the loan from DNV, which confirmed that the key performance indicators and sustainability performance targets align with Vista Shipping’s sustainability ambitions.
Standard Chartered acted as the Facility Coordinator, Sole Sustainability Co-ordinator, Mandated Lead Arranger and Facility and Security Agent for the transaction. The Bank also assisted Vista Shipping in securing a second party opinion on this loan from globally leading quality assurance and risk management company DNV, which confirmed that the key performance indicators and sustainability performance targets are material and align with its sustainability ambitions.
The bank noted that: ‘The loan arrangement introduced ambitious targets on annual efficiency ratio and sulphur oxide emissions over a 10-year period, and has a bi-directional margin ratchet mechanism to incentivise performance in meeting these targets.
‘The delivered vessels must also adhere to Hafnia’s Environmental Management System (EMS), which seeks to minimise adverse environmental effects and ensures that contractors follow clear EMS requirements around measurement and monitoring of environmental effects.’
Commenting on the deal, Perry Van Echtelt, CFO of Hafnia, said: ‘Building duel-fuelled vessels is an important part of Hafnia’s strategy to transition into a more sustainable maritime future. Standard Chartered’s sustainability-linked loan structure aligns our organisational sustainability objectives to meet the loan KPIs.’
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Source: Bunkerspot
