Standard Chartered leads USD 89.6m sustainability-linked loan for Vista Shipping’s LNG-dual fuelled vessels

Standard Chartered leads USD 89.6m sustainability-linked loan for Vista Shipping’s LNG-dual fuelled vessels

(IN BRIEF) Standard Chartered has been appointed to lead a $89.6 million sustainability-linked loan for Vista Shipping, a joint venture between Hafnia and CSSC Shipping Hong Kong, to finance the purchase of its first pair of liquefied natural gas (LNG)-dual fuelled vessels. Standard Chartered acted as the Facility Coordinator, Sole Sustainability Co-ordinator, Mandated Lead Arranger and Facility and Security Agent for the transaction. The loan arrangement included ambitious targets on annual efficiency ratio and sulphur oxide emissions over a 10-year period, and has a bi-directional margin ratchet mechanism to incentivize performance in meeting these targets.

(PRESS RELEASE) LONDON, 29-Mar-2023 — /EuropaWire/ —Standard Chartered was appointed to lead a USD89.6 million sustainability-linked loan (SLL) for Vista Shipping, a joint venture between Hafnia and CSSC Shipping Hong Kong, to finance the purchase of its first pair of liquefied natural gas (LNG)-dual fuelled vessels in support of both organisation’s decarbonisation 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.

Standard Chartered acted as the Facility Coordinator, Sole Sustainability Co-ordinator, Mandated Lead Arranger and Facility and Security Agent for the transaction. The Bank also assisted Vista Shipping in securing a second party opinion on this loan from globally leading quality assurance and risk management company DNV, which confirmed that the key performance indicators and sustainability performance targets are material and align with its sustainability ambitions.

The SLL arrangement introduced ambitious targets on annual efficiency ratio and sulphur oxide emissions over a 10-year period, and has a bi-directional margin ratchet mechanism to incentivise performance in meeting these targets. The delivered vessels must also adhere to Hafnia’s Environmental Management System (EMS), which seeks to minimise adverse environmental effects and ensures that contractors follow clear EMS requirements around measurement and monitoring of environmental effects.

Commenting on the deal, Perry Van Echtelt, CFO of Hafnia, said: “Building duel-fuelled vessels is an important part of Hafnia’s strategy to transition into a more sustainable maritime future. Standard Chartered’s sustainability-linked loan structure aligns our organisational sustainability objectives to meet the loan KPIs.” Li Jun, CFO of CSSC (Hong Kong) Shipping Company Limited, added: “By setting performance targets to reduce Vista’s vessels emissions, Standard Chartered’s sustainability-linked loan facility complements CSSC’s own decarbonisation goals.”

Abhishek Pandey, Global Head of Shipping Finance, added: “We are pleased to have played an active role in contributing to Vista Shipping’s decarbonisation efforts. 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.”

Hafnia

Hafnia is one of the world’s leading product tanker owners and operators. The company provides transportation of oil, oil products and chemicals to leading national and international oil companies, major chemical companies, as well as trading and utility companies.

CSSC (Hong Kong) Shipping Company

CSSC HK is one of the world’s leading ship leasing companies. As a leading market participant in the global ship leasing industry, we provide customized and flexible ship leasing solutions for ship traders, shippers and traders around the world to meet the different needs of customers.

Standard Chartered

We are a leading international banking group, with a presence in 59 of the world’s most dynamic markets, and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.

Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges.

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Media Contact:

Sheena Williamson-Holt
Communications & Branding
Hafnia
Tel: +45 3369 9000

CSSC (HK) Shipping Company
Investor Relations
Tel: +852 2238 5299

Josephine Wong
Group Media Relations
Standard Chartered
Tel: +65 6981 1514

SOURCE: Standard Chartered