Star Bulk Carriers announced that it entered into a $310 million loan agreement, which includes a $70 million tranche for the procurement and retrofitting of scrubbers for up to approximately 50 vessels in its fleet.
The remaining $240 million were drawn on September 28, and refinanced in 26 vessels. Namely 4 Newcastlemax, 4 Capesize, 2 Post Panamax, 14 Kamsarmax and 2 Supramax vessels.
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The Green Loan Tranche was approved by DNV GL in order to be aligned with the Green Loan Principles. According to Star Bulk, this financing is ‘an important milestone’ as the company is trying to promote maritime emission reductions and compliance with the 2020 IMO regulations.
The Green Loan Tranche has a margin of 280 basis points over LIBOR and an amortization profile of 4.5 years.
Speaking about scrubbers, Nicholas Confuorto, President & CEO, CR Ocean Engineering, argues that this technology is the best option for compliance with 2020 regulations. He explained that considering all options, only those who choose scrubbers can benefit from this technology, which is already available and proven.
However, key barriers in scrubber investment are shipowners’ concerns regarding future regulations and the differential price between low sulphur and high sulphur.
In the same wavelength, SAFETY4SEA Team met with Dr. Martin Koller, Product Manager, Air Pollution Control, ANDRITZ during SMM to discuss about scrubbers and what this investment means for the operators. Dr. Koller insisted that scrubber systems are viable option for compliance with the upcoming regulation.
Nonetheless, he noted that if operators choose scrubbers, they will need to retrofit their ships today in order to get them ready in 2020. For this reason, space and power requirements onboard are important to be evaluated.
