€420M green shipping fund launched in the Netherlands

Amsterdam-based sustainable investment management company Prow Capital has launched a €420 million (about $474 million) green shipping fund.

Illustration; Photo by Maersk

As informed, the fund provides shipowner loans for new and existing vessels or retrofits that comply with Prow Capital’s ESG criteria and lower their emissions in order to meet the IMO’s 2030 and 2050 goals and the EU Green Deal.

With an average investment of €15-€50 million, the fund provides senior secured debt financing to short- and deep-sea vessel owners and operators located in Europe.

The criteria for new or retrofitted green ships with measurable emission reduction include:

  • Fuelled by low emission fuels including LNG, LPG, methanol and hydrogen;
  • Full electric ships;
  • Hybrid Eco ships, electric propulsion combined with MGO or low emission fuels;
  • Fuelled by 100% alternative fuels, if measurable and enforceable.

The green shipping fund is the first fund of the 2020-established investment management company.

According to Prow Capital, the fund supports the United Nations Sustainable Development Goals (SDGs) and specifically focuses on Affordable and Clean Energy (SDG 7) and Climate Action (SDG 13).

Tighter lending requirements have made traditional sources of ship finance increasingly difficult to access, and shipping needs significant investment to accelerate its transition to a zero-emissions industry and fund the growing fleet capacity required to transport the world’s goods. The strategy of Prow Capital is to support shipping companies in decarbonizing their fleets through senior secured debt finance against realistic terms and conditions.

“Prow’s ambition is to make zero-emissions shipping a reality and become a viable long-term alternative to the traditional banks in the maritime sector,” according to the company.

Prow Capital is a member of the Getting to Zero Coalition, an industry-led alliance working towards decarbonising the international maritime shipping sector.