Photo: Image courtesy: Precious Shipping

Precious Shipping obtains $85 million sustainability-linked loan

Thai dry bulk owner and operator Precious Shipping has secured a sustainability-linked loan facility worth $85 million.

The loan was inked with International Finance Corporation, Export-Import Bank of Thailand, and TMBThanachart Bank Public Company Limited, mainly to refinance four cement carriers and to redeem the remaining outstanding principal of the company’s PSL211A debentures.

The facility is divided into three tranches, with International Finance Corporation providing $55 million, and TMBThanachart Bank Public Company Limited and Export-Import Bank of Thailand providing $ 15 million respectively.

The ships in question are M.V. Apinya Naree, M.V. Boonya Naree, M.V. Chanya Naree, and M.V. Danaya Naree, and supramax dry bulker M.V. Apiradee Naree.

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Under the terms of the deal, the loan is expected to be repaid over 8 years, in 32 quarterly installments beginning on 30th December 2021.

In its 2020 sustainability report, Precious Shipping said it made a huge reduction in its carbon footprint, lowering its average carbon intensity per transport work by 22.84 % over the entire fleet from 2014 to 2020.

The company believes LNG cannot be considered as a successful solution to reduce greenhouse gas emissions until a solution is found to address or substantially reduce the methane slip.

Therefore, the shipowner is waiting for viable next-generation zero-emission vessels to become available on the market before it invests in modernizing its fleet with more ECO ships.