Navigator Gas signs gender diversity-linked loan facility agreement
Navigator Gas, owner and operator of handysize liquefied gas carriers, has entered into a secured term loan facility which includes sustainability and gender diversity-linked performance indicators.
The company entered into the facility agreement with among others, Nordea Bank Abp, ABM AMRO Bank N.V., and BNP Paribas S.A. on 20 March 2023.
Pursuant to the agreement, lenders made available up to $200 million, subject to the terms and conditions set out in the facility agreement.
As informed, the loan was fully drawn down on 28 March to repay two of the company’s bank loan facilities which were due to mature later in 2023, as well as providing an additional $65.4 million for general corporate purposes.
According to Navigator Gas, the facility agreement contains certain conditions, covenants and events of default, including a sustainability-linked margin adjustment with two key performance indicators (KPIs).
One KPI is linked to fleet environmental criteria and the second is linked to percentage targets for women in leadership roles at Navigator each year, with an initial target of 22% by the end of 2023, increasing year by year to a final target of 35% of women in leadership roles by 2028.
Commenting on the gender diversity-linked KPI, Mads Peter Zacho, Chief Executive Officer of Navigator, said: “We are committed to improving gender diversity across the business in a sector that has traditionally been male-dominated. As far as we are aware, this facility agreement linked to gender diversity is one of the first of its kind in the sector, and we are enthusiastic about achieving our targets supporting wider change in the industry.”