UK tanker and bulker owner Union Maritime has sealed a $25m sustainability-linked loan to help its decarbonisation efforts.
The low-profile company has secured the financing with a leading financial services company, according to law firm Watson Farley & Williams (WFW).
WFW served as legal advisor to the bank involved in the deal with Union Maritime, which was founded in 2006 by Laurent Cadji.
The loan package is secured on three bulk carriers.
The focus is on the International Maritime Organization's aim to reduce shipping's carbon footprint through the recent adoption of a new operational carbon intensity indicator, WFW said.
The transaction involved drafting a margin adjustment mechanism based on the company's carbon intensity rating.
This will provide an incentive for Union Maritime to reduce emissions, as there are also "disincentives" for non-compliance.
This demonstrates the shipowner's "commitment to promoting sustainable ship financing", WFW said.
The lawyers proposed various drafting solutions as they advised on the implications of the loan terms.
The work was handled by the firm's Athens maritime team, led by partner Alexia Hatzimichalis, supported by senior associate Ourania Todoulou and associate Karolina Zachou.
Union Maritime operates 31 product tankers, 11 crude carriers, nine bulkers and three offshore vessels.
The bulkers comprise two capesizes built in 2010 and 2011, plus ultramaxes, a supramax and handysizes.
The company is the UK's biggest independent tanker owner.
Cadji, its managing director, has said about 40% of the fleet is on time charters.
His aim in setting up the company was to build the leading oil product logistics platform in West Africa.
Cadji started his career at Credit Suisse and Morgan Stanley, where he worked in the commodities unit, trading oil.
An aframax newbuilding is due from Cosco Shipping Heavy Industry (Zhoushan) this month and a 40,000-cbm LPG carrier will be delivered from Hyundai Mipo Dockyard in 2023.
In January, TradeWinds reported that BP had secured two Union Maritime LR2s for up to two years at high rates.
European brokers said the 109,000-dwt Ampleforth (built 2008) and Wellington (built 2009) were fixed for one year at close to $20,000 per day, with an option for one more year.
