The global containership management company, Seaspan Corporation secured a $1.8 billion sustainability-linked loan (SLL), the first of its kind in the containership leasing industry.
In fact, the sustainability-linked loan will be a $200 million increase to Seaspan’s portfolio financing program, the first of its kind in the containership leasing industry.
We are excited to be in a position to drive innovation in both ship finance and sustainability-linked lending, which aligns with our corporate goals and key priorities for Seaspan.
…as Matthew Tinari, Head of Corporate Development said.
What is more, the SLL received a BBB- senior secured rating from Kroll Bond Rating Agency.
For the records, the loan consists of a $200 million term loan with a tenor of six years.
The expanded Program is comprised of a $300 million revolving credit facility (“RCF”) and approximately $1.5 billion of term loan commitments, with staggered maturities between 2024 and 2026.
Proceeds from the SLL are intended to pay down the RCF, bolstering liquidity and capacity for growth opportunities.
In light of the situation, Bing Chen, Chief Executive Officer and Interim Chief Financial Officer of Atlas noted:
Our execution of the SLL marks the first sustainability-linked financing in the containership leasing space and aligns Seaspan’s long-standing commitment to sustainability with our capital structure strategy. Further, our team has been consistently executing on quality growth and capital structure improvement through a difficult period for the global capital markets.
SLL pricing is adjusted based on Seaspan’s achievements measured against two key performance indicators (KPIs).
Namely, the first aims at measuring the alignment of the carbon intensity of the collateral vessels with the International Maritime Organization (IMO) 2050 decarbonization trajectory.
While, the second aims at fostering cooperation with charterers in order to advance the decarbonization agenda, by seeking to include sustainability-linked provisions in future charter contracts, hence creating an innovative value chain approach to decarbonization
