Idan Ofer has become the latest shipowner to tap the growing 'green loan' market using the funds to fund a series of exhaust gas scrubbers.
Singapore-based Eastern Pacific Shipping (EPS) has secured the $40m loan facility from BNP Paribas. The scrubbers will be installed on ships owned by Quantum Pacific Shipping (QPS).
BNP Paribas is said to have made the green loan facility available after a “thorough assessment” of Eastern Pacific’s and Quantum Pacific’s environmental and social responsibility policies and practices, by independent environment and social governance analysts, Vigeo Eiris.
News of the green bonds loan comes on the heels of an announcement by Norwegian Export Credit Guarantee Agency (GIEK), who is backing a $72m loan facility from KfW IPEX-Bank, for Quantum Pacific to purchase scrubbers from Norway based Clean Marine.
“We strive to be the shipping industry’s provider of choice for safe and efficient transportation,” said Eastern Pacific chief executive Cyril Ducau.
“This means that instead of taking a wait-and-see approach towards environmental regulations, we pro-actively identify and make timely commitments to green initiatives that reduce the environmental impact wherever we operate.
“We are pleased to receive this green loan as it validates our position in this area.”
Joris Dierckx, head for Southeast Asia and chief executive, Singapore at BNP Paribas said the bank was pleased to provide the first green loan issued to a shipping company in Asia Pacific.
“The rigorous structuring and approval process undertaken for the green loan – along with the high level of assurance expressed by Vigeo Eiris for both the holding company and loan – underscore Eastern Pacific Shipping’s strong environmental and social commitments,” he said.
In October this year Star Bulk Carriers secured a $70m green loan as part of a $310m loan package to finance around 50 scrubbers.
The green loan tranche, which was certified by DNV GL Business Assurance Services, has a margin of 280 basis points over LIBOR and an amortization profile of 4.5 years.
Star Bulk said at the time that the completion of this financing was an “important milestone” for the company, which is “pioneering sustainable green loans” for dry bulk shipping investments, which aim to promote maritime emission reductions and compliance with the 2020 IMO regulations.
