Vista Shipping, a joint venture between Hafnia and CSSC Shipping Hong Kong, has secured an $89.6m sustainability-linked loan (SLL) to finance its first pair of LNG-dual fuelled vessels.
Standard Chartered acted as the facility coordinator, sole sustainability coordinator, mandated lead arranger and facility and security agent for the transaction.
The SLL arrangement is said to introduce “ambitious targets” on annual efficiency ratio and sulphur oxide emissions over a 10-year period.
The loan also has a bi-directional margin ratchet mechanism to incentivise performance in meeting these targets, Standard Chartered said.
The bank also assisted Vista Shipping in securing a second-party opinion on this loan from DNV, which confirmed that the key performance indicators and sustainability performance targets are material and align with its sustainability ambitions.
LNG-dual-fuelled vessels, which are lower in emissions compared with traditional bunker fuel fleets, have grown in popularity in recent years among shipowners, lessors and operators as the maritime industry seeks to reduce carbon emissions.
“Building duel-fuelled vessels is an important part of Hafnia’s strategy to transition into a more sustainable maritime future,” said Hafnia chief financial officer Perry Van Echtelt.
Li Jun, CFO at CSSC (Hong Kong) said Standard Chartered’s sustainability-linked loan structure aligns the leasing company’s organisational sustainability objectives to meet the loan KPIs.
Standard Chartered’s global head of shipping finance Abhishek Pandey said: “The maritime industry is crucial to the flow of goods and economic prosperity yet is also a key contributor to global greenhouse gas emissions annually.
“A concerted effort across shipowners, yards, charterers and financiers is needed to make it more sustainable.
“We hope that the success of this transaction can pave the way forward for future dual-fuel financing for the shipping industry, as we work with our clients to accelerate the transition towards net zero.”
While Vista Shipping did not disclose the identity of the ships involved, Clarksons recently reported that the shipowner had taken delivery of the first of a series of LNG-capable LR2 tankers.
The shipbroker said the 110,000-dwt Hafnia Languedoc was delivered on 15 March 2023 from GSI Nansha in China.
The LR2 is the first in a series of four ordered by Vista Shipping on the back of charters from TotalEnergies subsidiary Chartering and Shipping Services (CSSSA).
