SEA\LNG, the industry coalition aiming to accelerate the widespread adoption of LNG as a marine fuel, announced the addition of ‘Societe Generale’, the first financial institution ever entering the group.
Joining a growing band of industry leaders from across the LNG value chain, Societe Generale brings an essential financial perspective to the coalition, SEA\LNG explained.
“As the 0.5% global sulphur cap from January 2020 edges ever closer, the case for LNG as a marine fuel continues to gather momentum. Innovative financing is a core component to breaking down barriers to adoption and Societe Generale is at the forefront of developing frameworks to support this evolution. We are therefore delighted to welcome them to our growing coalition and look forward to benefiting from their extensive knowledge and experience,” said Peter Keller, SEA\LNG chairman and executive vice president of Tote.
As explained by Paul Taylor, Global Head of Shipping Finance, Societe Generale Corporate & Investment Banking, this move is in line with the bank’s wider environmental commitment, as it recognizes the benefits of LNG in emissions reduction when compared with traditional marine fuels.
“Societe Generale wants to play a key role in supporting the SEA\LNG coalition to realise its goal of making LNG a viable maritime fuel for 2020 and beyond. This strategic membership will help develop a long-term financial framework which we hope will contribute to, and supplement, the work of other industry leaders in the LNG shipping value chain,” he stressed.
Societe Generale’s commitment to financing alternative solutions – which support the development of green maritime transport – is demonstrated by its involvement in the first transaction for the EU’s recently instituted Green Shipping Guarantee programme, where it acted as the sole mandated lead arranger, lease investor, facility and security agent, hedge provider, and lender in a EUR 142.6 million French lease financing of “Honfleur”, the first LNG-powered ferry to be commissioned by Brittany Ferries, with a funded guarantee from the European Investment Bank.
“The addition of Societe Generale to the coalition further strengthens SEA\LNG’s collaborative membership which continues to leverage knowledge, networks, and real-life examples to obtain a competitive global LNG value chain for cleaner maritime shipping,” a joint official statement reads.