Maersk Secures USD 5 Bn Loans to Reach Green Shipping Targets
- Business & Finance
Danish shipping giant A.P. Moller – Maersk has secured a new sustainability-linked revolving credit facility of USD 5 billion through a syndicate of 26 selected banks.
As explained, this is the first bank refinancing arranged by Maersk after its transformation from a diversified conglomerate to a global container logistics company.
In 2019, Maersk announced its commitment to becoming carbon neutral by 2050. The new finance facility is said to affirm Maersk’s efforts to drive sustainability into its operations and supply chains.
“We are determined to reach our ultimate target of becoming fully carbon neutral by 2050, and this agreement serves as another enabler for us to deliver on that ambition,” Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands, pointed out.
“Given the lifespan of our fleet, we need to find new and sustainable solutions to propel our vessels within the next 10 years. To realize this ambitious commitment, we are partnering with researchers, regulators, technology developers, customers, energy providers – and now banks.”
Specifically, the facility refinances the undrawn USD 5.1 billion facility maturing in 2021 and has a tenor of five years which may be extended by up to two years. It will be part of the company’s liquidity reserve.
“We have received strong support from our global relationship banks. The facility was substantially oversubscribed, and we are pleased with the terms and conditions of the new facility,” Henriette Thygesen added.
“With the new facility we have extended the maturity profile of our finance commitments, while aligning with our sustainability ones.”
The credit margin under the facility will be adjusted based on Maersk’s progress to meet its target of reducing CO2 emissions per cargo moved by 60% by 2030, which is more ambitious than the IMO target of 40% by 2030, according to the company.