Klaveness Combination Carriers is looking to slash its carbon intensity by nearly half in the next seven years and is putting its money where its mouth is to get there.
The Oslo-listed shipowner announced on Friday a 5-year, $190m sustainability-linked debt facility and the framework in which it will operate with the hopes of cutting its CO2 emissions per tonne of transported cargo per nautical mile to 5.3 by the end of 2026 and 4.1 by the end of 2030.
If the company is able to pull it off, it will pay less on the $190m facility while cutting its carbon intensity by 46% by 2030 compared to 2018.
Klaveness Combination Carriers said the framework was developed in accordance with sustainability-linked loan and bond principles established by the International Capital Markets Association and the Loan Market Association.
The debt facility will allow the company to issue bonds and take on bank loans.
The facility is provided by DNB Bank, Skandinaviska Enskilda Banken, Sparebank 1 and Sparebanken Vest.
DNB served as agent and Sandinaviska Enskilda Banken served as sustainability coordinator.
The facility has an interest rate of SOFR plus 2.1%, with the margin adjusting up or down based on Klaveness Combination Carriers’ ability to cut its CO2 emissions per tonne of transported cargo per nautical mile, also known as the energy efficiency operational indicator in line with the 2030 goal.
In 2018, the company’s energy efficiency operational indicator was 7.6.
DNV provided a second-party opinion on the framework.
