Oslo-listed car carrier operator Wallenius Wilhelmsen has secured $800m worth of vessel-secured bank financing linked to the company’s emission reductions.
The facilities consist of two new financing deals signed with 11 banks at the end of June, of which $670m was drawn down, mainly to repay $569m of existing vessel debt, while the remaining $130m is available as a revolving credit line and can be used for general corporate purposes.
The financings are issued under Wallenius Wilhelmsen’s sustainability-linked financing framework. Interest margins will be adjusted on an annual basis, and if the company achieves the interim CO2-intensity target, the margin will be reduced by 0.05 percentage points for the next year.
The agreements are secured by 20 vessels with an average age of 12 years and a market value of $1.4bn. As part of the transaction, five older vessels became debt free, increasing the company’s unencumbered fleet to 12 vessels. The company’s CO2 equivalent intensity was reduced by 33.6% from 2008 to 2019 and is expected to reduce a further 27.5% from 2019 to 2030.
Tags: Emission Reduction, Sustainability, Vessel, Wallenius Wilhelmsen
Recent Posts
Reliance eyes to access to PSU oil companies’ ATF pipeline
Hanaria ship powered by hydrogen and biodiesel passes certification
IAEA head calls for a roadmap for nuclear energy
Methatug, a methanol-powered tug launched at Port of Antwerp-Bruges
HIF Global selects Johnson Matthey’s methanol technology
Govt to introduce hydrogen-based process for steel production
LR to support Shandong Marine Group’s green energy transition
Bureau Veritas assesses technical viability of carbon capture tech