- WFW on sustainability-focused US$25m dry bulk carrier financing
- more specifically, the IMO’s aim is to reduce international shipping’s carbon footprint through the recent adoption of a new operational carbon intensity indicator
- the transaction involved drafting a margin adjustment mechanism based on carbon intensity rating as an incentive for the owners to reduce the carriers’ carbon emissions
- WFW advised the client regarding the legal and commercial implications of the mechanism by proposing various drafting solutions
Watson Farley & Williams (“WFW”) has advised a leading financial services company regarding a US$25m financing to companies controlled by Union Maritime Limited secured on three dry bulk carriers with a focus on sustainability says an article on Sea News.
Sustainable ship financing
The transaction involved drafting a margin adjustment mechanism based on carbon intensity rating as an incentive for the owners to reduce the carriers’ carbon emissions, which also included disincentives for non-compliance demonstrating our client’s commitment to promoting sustainable ship financing.
Proposed drafting solutions
WFW advised the client regarding the legal and commercial implications of the mechanism by proposing various drafting solutions in order to best document the commercial agreement.WFW regularly advises shipping clients on a wide variety of sustainability-related matters, as well ESG generally.
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Source: Sea News
