Singapore-based shipping owner Quantum Pacific Shipping has secured a US$40m Green Loan from the French bank giant BNP Paribas, to finance the purchase and installation of scrubbers for its fleet. The signing of this agreement is considered as the first green loan issued to a shipping company in Asia Pacific.
Law firm Watson Farley & Williams Singapore (WFW) has advised BNP Paribas in connection with the loan for the scrubber installation on the vessels owned by Quantum Pacific Shipping and managed by Singapore-based Eastern Pacific Shipping (EPS).
The green loan facility was made available after a rigorous assessment of EPS’ and QPS’ environmental and social responsibility policies and practices by second-party opinion company, Vigeo Eiris.
…Instead of taking a wait-and-see approach towards environmental regulations, we pro-actively identify and make timely commitments to green initiatives that reduce the environmental impact wherever we operate. We are pleased to receive this green loan as it validates our position in this area,
…said Cyril Ducau, EPS CEO.
BNP Baribas has been significantly engaged in green finance over the last years. On the sidelines of the COP 24 last week, BNP Paribas along with four other leading banks, such as ING, BBVA, Société Générale and Standard Chartered, committed to explore ways to steer financial streams towards the goals of the Paris Agreement.
In 2017, the European Investment Bank and BNP Baribas agreed to finance EUR150 million worth of vessel modernization to help companies to green their fleets.
As a bank that connects corporates with sustainable finance, BNP Paribas is pleased to provide this green loan to Quantum Pacific Shipping – the first green loan issued to a shipping company in Asia Pacific,
…stated Joris Dierckx, Head for Southeast Asia and CEO, Singapore at BNP Paribas.
The announcement comes at a time of a hot debate following announcement by MPA Singapore that it will ban open-loop scrubbers from 1st January 2020, in a bid to protect the marine environment and ensure that the port waters are clean.