now loading...
Wealth Asia Connect Middle East Treasury & Capital Markets Europe ESG Forum TechTalk
Treasury & Capital Markets
Hafnia secures US$303 million sustainability loan
Deal involves an annual margin adjustment mechanism linked to KPIs
Tom King 22 Sep 2023

Singapore-headquartered tanker owner Hafnia has signed a sustainability-linked credit facility of up to US$303 million. Maturing in early 2009, the loan facility was established in partnership with a syndicate of eight banks.

The syndicate includes BNP Paribas, Citibank, Danske Bank, DBS Bank, IYO Bank, Nordea Bank, OCBC Bank, and Standard Chartered Bank, all of which acted as mandated lead arrangers.

BNP Paribas served as the facility coordinator, DBS Bank as the sustainability coordinator, and Nordea as the loan facility agent.

The deal has been secured by a fleet of nine chemical tankers, and has an annual sustainability margin adjustment mechanism, with international accredited registrar and classification society DNV providing the second-party opinion on key performance indicators (KPIs) such as emissions-related and relative share of chemical cargoes carried.

Hafnia says the facility not only reduces its funding costs but also enhances its financial flexibility, positioning the company for future growth and sustainability efforts.

“We appreciate the continued support from our banks and managed to achieve a very competitive pricing and financing structure,” says Hafnia chief financial officer Perry van Echtelt. “Through this loan facility, we will be cooperating in our efforts towards the decarbonization of the shipping sector. This facility reinforces Hafnia’s ability to access highly competitive funding sources and aligns our financing with our path to decarbonizing shipping.”

Hafnia is part of BW Group, an international shipping group involved in oil and gas transportation, floating gas infrastructure, environmental technologies, and deepwater production.

Conversation
Jugeshinder Singh
Jugeshinder Singh
Group CFO
Adani Group
- JOINED THE EVENT -
18th Asia Bond Markets Summit - Europe Edition
Taking advantage of the great bond re-set
View Highlights
Conversation
Ismael Pili
Ismael Pili
head of research
VinaCapital
- JOINED THE EVENT -
Fitch on Vietnam
Overcoming challenges, sustaining growth
View Highlights