rss icon Subscribe
desktop mobile

Klaveness Lines Up Sustainability-linked Newbuild Financing

In May, the MV Barracuda made the first switch from dry cargo to jet fuel . (Photo: KCC)

Norwegian shipping company Klaveness Combination Carriers (KCC) said it has secured a $60 million sustainability-linked term loan and revolving credit facility for the financing of the seventh and eighth CLEANBU vessels with delivery in 2021, reportedly a first within the maritime industry. Nordea is acting as coordinator and bookrunner and Credit Agricole CIB as sustainability agent.

The credit margin will be adjusted, up or down, based on KCC's sustainability performance, as defined by the company's ability to meet its goal of reducing CO2 emissions per ton of transported cargo per nautical mile (EEOI) and reducing absolute CO2 emissions per vessel.

KCC's is striving to be carbon neutral by 2030, to reach the International Maritime Organization's (IMO) carbon intensity target for 2030 already in 2022 and to reduce absolute emissions per vessel by 15% from 2018 to 2022. On the way to reaching these goals, KCC's sustainability performance/KPIs will be disclosed on a quarterly basis and main KPIs will be subject to an annual external audit.

KCC's fleet of combination carriers are built for transportation of both wet and dry bulk cargoes and are operated in trades where the vessels efficiently combine dry and wet cargoes with minimum ballast. The resulting high utilization and efficiency already makes KCC's fleet the most carbon efficient deep-sea transport system for tanker and dry bulk cargoes in the world, with up to 40% less CO2 emitted per transported ton compared to standard vessels, the company says.

"We strongly believe in the greening of capital and that access to competitive funding going forward will be based on the ability to deliver green transformation. Linking pricing to emissions performance demonstrates our commitment towards our targets to substantially improve CO2 efficiency in our fleet." says Liv Dyrnes, CFO of Klaveness Combination Carriers ASA. "This facility shows us that sustainability ambitions pay off and we are pleased to cooperate with banks that have the same ambitions as us when it comes to sustainability."

"Credit Agricole CIB is very proud to support KCC in its ambitious route to carbon neutrality by 2030. With a tailor-made solution indexed on KCC sustainability performance regarding its decarbonization pathway, Credit Agricole CIB is supporting both in investing in new and energy efficient vessels and in committing itself towards sustainability strategy objectives," says Tanguy Claquin, Head of Sustainability within Credit Agricole CIB.

"Nordea is very pleased to have acted as Coordinator and Bookrunner in this transaction where KCC is setting out on an ambitious path to be carbon neutral by 2030. It is key for us to support our customers in their green transition both through advisory and products and this transaction is a strong testament to that. Nordea would like to congratulate all parties involved, and look forward to further cooperation with one of the frontrunners within sustainability in the shipping space," says Ylva Hannestad, Deputy Head of Group Sustainable Finance in Nordea.

Jul 6, 2020



Trafigura Offers COVID-19 Premium

(Photo: Trafigura)

Commodities trader Trafigura Beheer has become the first company to offer a defined Covid premium

New Stock Index Launched for LNG Shipping

© nikkytok / Adobe Stock

A newly launched stock index family is designed to measure the performance of companies involved

Wärtsilä’s Eskola: Impact of COVID-19 "Clearly Visible" on 1H Results

“Given this difficult back-drop, second quarter net sales held up reasonably well; this was mainly thanks to increased equipment deliveries, which offset the volume decline in services,” Jaakko Eskola, President and CEO, Wärtsilä. Photo courtesy: Wärtsilä

Wärtsilä Corporation’s half year financial report through June 2020 was littered with bad news due


Shipping's Share of Global Carbon Emissions Increases

© nmann77 / Adobe Stock

Carbon emissions from shipping rose in the six-year period to 2018 and accounted for 2.

Ship Believed to Have Spilled Oil off Venezuela

© Alexey Zakirov / Adobe Stock

An oil slick washed up over the weekend on the coastline of Venezuela's western Falcon state

Aerial Drone Sniffs Out Ship Emissions in Denmark

(Photo: Danish Maritime Authority)

A new aerial drone is being tested to monitor vessel emissions in the Great Belt, a busy shipping

Maritime Apps