Pacific Basin has closed Unsecured Revolving Credit Facility deal
Published by Oliver Kleinschmidt,
Editorial Assistant
Dry Bulk,
Pacific Basin Shipping Ltd has announced the successful closing of its US$150 million Sustainability-Linked three-year Senior Unsecured Committed Revolving Credit Facility (the Facility) for general corporate purposes. This represented Pacific Basin’s inaugural sustainability-linked loan facility.
Mr Martin Fruergaard, CEO of Pacific Basin, said: “the Facility represents our company's first syndicated unsecured revolving credit facility and sustainability-linked financing. This Facility strengthens our financial capacity and diversifies our funding profile while reinforcing our commitment to sustainable shipping. The Facility's unsecured profile, competitive pricing and oversubscription reflect the market's support for Pacific Basin and its ESG initiatives.”
BNP Paribas and/or its affiliates (BNPP) and Citigroup Global Markets Asia Ltd and/or its affiliates (Citi) acted as the Joint Coordinating Mandated Lead Arrangers and Bookrunners, and Joint Sustainability Coordinators of the Facility. BNPP and Citi have been joined in the Facility by Hong Kong and Shanghai Banking Corporation Ltd, Iyo Bank Ltd, SBI Shinsei Bank Ltd and Skandinaviska Enskilda Banken AB (publ).
The Facility aligned funding with Pacific Basin’s corporate sustainability agenda, which featured a tiered pricing mechanism, with interest margin adjustments linked to predetermined key performance indices (KPIs) based on annual sustainability performance targets (SPTs). The chosen KPIs address carbon intensity and crew safety, which are material environmental and social topics in the industry and ESG issues that Pacific Basin prioritises as most important.
Pacific Basin has engaged Moody’s Investors Service (Moody’s) to provide a Second Party Opinion that opines on the relevance of the KPIs and robustness of the SPTs, and on their alignment with Pacific Basin’s ESG ambitions, including targeting net zero by 2050 and safeguarding the safety, health and wellbeing of the company’s staff at sea.
Moody’s assessment found that the contribution towards sustainability would be significant, that it aligned with best practices principles and that it had a sustainability quality score of SQS2 (very good).
Click here for free registration to Dry Bulk
Read the article online at: https://www.drybulkmagazine.com/shipping/06122023/pacific-basin-has-closed-unsecured-revolving-credit-facility-deal/
You might also like
BIMCO and IBIA collaborate on maritime challenges
IBIA and BIMCO have announced their collaboration on fuel and maritime challenges in order to facilitate shipping's decarbonisation.