d’Amico secures $82M sustainability-linked loan
d’Amico Tankers, part of Italian shipping company d’Amico International Shipping (DIS), has signed an $82 million sustainability-linked loan concerning four of the company’s tankers.
The five-year term facility was inked with ING and Skandinaviska Enskilda Banken (SEB) to refinance the bank loans maturing in 2023 on MT Cielo di Cagliari, MT Cielo Rosso, MT Cielo di Rotterdam, and MT Cielo di New York.
All four tranches of this new facility are expected to be drawn down, with the respective previous financings reimbursed, in July 2022, the company said.
For this new sustainability-linked loan, the margin is adjusted based on the CO2 emissions of d’Amico Tankers’ fleet and the associated annual efficiency ratio (AER) indicator, relative to the AER trajectory established by the Poseidon Principles for the type of vessels controlled by d’Amico Tankers.
ING is acting as the agent and the sustainability coordinator of this facility.
“I am glad to announce that DIS has refinanced the loans maturing in 2023, with their related balloons, on four of its owned vessels, with d’Amico Tankers achieving some of its best financing terms ever. This new facility is also a ‘sustainability-linked loan’,” Paolo d’Amico, Chairman and Chief Executive Officer of d’Amico International Shipping, said.
“ING is very pleased to act as sustainability coordinator for d’Amico and structure their sustainability linked loan in alignment with the Poseidon Principles. DIS … fits perfectly with ING’s ambitions to help the maritime industry decarbonise,” Stephen Fewster, Global Head of Shipping at ING, commented.
In January this year, DIS signed a contract for its first sustainability-linked loan as part of the refinancing of all debt maturing in 2022.
As of today, DIS’ fleet comprises 35 double-hulled product tankers (MR, Handysize and LR1, of which 17 owned, 10 chartered-in and 8 bareboat chartered-in) with an average age of about 6.9 years for its owned and bareboat chartered-in vessels.