Piraeus Bank has been revealed as the lender behind a $16.85m green loan to Greek bulker owner Seanergy Maritime Holdings.
The financing of a secondhand capesize purchase for the US-listed company marked the Greek lender's first sustainability-linked deal, according to UK-headquartered law firm Watson Farley & Williams (WFW), which advised the bank.
The loan, announced by Seanergy in October, includes a margin-adjustment mechanism based on carbon intensity ratings as an incentive for the owner to reduce emissions.
"It also incorporated disincentives for non-compliance, demonstrating Piraeus Bank's commitment to promoting sustainable ship financing," WFW added.
Piraeus Bank is a multinational financial services company that holds a leading position in the financing of Greek-owned merchant shipping.
Its cash went towards the financing of the 181,000-dwt bulker Worldship (built 2012), bought in May. Seanergy paid $33.7m for the capesize.
The company said at the time that a "leading European bank" was involved.
The loan amortises over five years, with a final balloon payment of $6.1m at maturity.
Interest is at Libor plus 3.05% per year initially.
Cross-border effort
The cross-border WFW team that advised Piraeus Bank was led by Athens partner Alexandros Damianidis, supported by senior associate Christina Giagka and associate Vassia Angeletaki.
New York partner Susanne Burstein advised on the Marshall Islands law aspects of the transaction.
Damianidis said: "We are very pleased to have supported our long-standing client Piraeus Bank on this innovative financing, which is its first sustainability-linked loan.
"Following on from the launch of our maritime thought leadership report The Sustainability Imperative and advising on the development of the Poseidon Principles, this instruction highlights WFW's ongoing commitment to promoting sustainable development in the shipping sector," he added.
