Safe Bulkers has sealed $60m in new "green" loans that will be used to refinance some of its existing debt.
The new five-year credit facility comprises a $30m term loan and $30m revolving credit facility, which will reduce from its fourth year onwards.
The financing includes an incentive discount on the loan's interest rate, which Safe Bulkers said is linked to "independently verified" pre-determined emission targets but offered no further details.
This will be the New York-listed bulker owner's first sustainability-linked credit facility, but the firm did not reveal its lender.
The proceeds from the credit facility will refinance loan facilities with the same financial institution of a tranche of $71.1m outstanding from a term loan and a revolving credit facility tranche with a drawdown capacity of $6.5m.
The revolver is currently secured by six vessels and matures in 2024. Five of the vessels will secure the new credit facility and one will remain debt free.
"This is a further action towards deleveraging, while at the same time the company strengthens its balance sheet and maintains its financial flexibility through the existing cash reserves and the agreed undrawn revolving credit facilities" said Loukas Barmparis, president of Safe Bulkers.
"We expect that by the end of the year if the charter market continues to perform, we will reach a leverage ratio that we consider optimum."
Athens-based Safe Bulkers said does not intend to utilise the full capacity of the reducing revolving credit facility at this time.
Financial covenants for the new financing are in line with the existing loan and credit facilities, the company added.
Safe Bulkers' total debt amounted to $491m at the end of June, down from $603m at the end of March, according to its latest quarterly financial statement.
Its debt levels have dropped for four consecutive quarters.
