Pacific Basin Shipping, one of the world’s largest owners and operators of dry bulk vessels, has closed its second sustainability-linked loan, reinforcing its commitment to greener shipping and financial resilience.

The company announced a $250 million sustainability-linked seven-year senior secured committed revolving credit facility designed for general corporate purposes. This follows the success of its first $150 million sustainability-linked loan finalized in December 2023.

“This is our second sustainability-linked financing facility, which serves to extend our funding profile, reinforce our commitment to sustainable shipping, and strengthen our financial capacity as we continue to pursue growth opportunities, especially in these times of uncertainty and turbulence,” said Martin Fruergaard, CEO of Pacific Basin.

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The new facility features a tiered pricing mechanism, linking interest margins to the company’s performance against key sustainability targets. These targets include reductions in carbon intensity and improved crew safety standards, aligning with material environmental and social goals within the shipping industry.

In addition, Pacific Basin engaged Moody’s Investors Service to provide a second-party opinion. Moody’s assessed the relevance and robustness of the company’s key performance indicators (KPIs) and sustainability performance targets (SPTs), confirming their alignment with the company’s broader environmental and social ambitions, such as achieving net-zero emissions by 2050 and enhancing staff wellbeing at sea.

The facility’s oversubscription and competitive pricing underscore strong market confidence in Pacific Basin’s growth strategy and sustainability initiatives.

Earlier this year, the company strengthened its governance by setting up a board-level Sustainability Committee to ensure that its business strategy syncs better with its long-term sustainability objectives.

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In a related move, Pacific Basin recently signed a Memorandum of Understanding (MoU) with Hong Kong and China Gas Company Limited (Towngas). This agreement aims to enhance the shipping company’s access to green methanol, a renewable marine fuel. The MoU sets the groundwork for a future supply agreement, supporting Pacific Basin’s plan to integrate dual-fuel, low-emission vessels into its fleet.

With these steps, Pacific Basin is positioning itself at the forefront of sustainable shipping, harnessing the power and potential of innovative financing tools and cleaner fuels to meet the industry’s decarbonization targets.

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Source: Offshore Energy