Sustainability is playing a deeper role in financing across the supply chain.
This is the first bank refinancing arranged by Maersk after its transformation from a diversified conglomerate to a global container logistics company. The facility refinances the undrawn $5.1 billion facility maturing in 2021 and has a tenor of five years that 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,” Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands at Maersk, said. Maersk has secured a new sustainability linked revolving credit facility of $5 billion through a syndicate of 26 selected banks. “The facility was substantially oversubscribed, and we are pleased with the terms and conditions of the new facility. 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 percent by 2030, which is significantly more ambitious than the International Maritime Organization (IMO) target of 40 percent by 2030.
In 2018, Maersk announced its commitment to becoming carbon neutral by 2050. The new finance facility affirms Maersk’s efforts to drive sustainability throughout 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 said. “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.”
Banco Santander, Bank of America Merrill Lynch International Designated Activity Company, Barclays Bank, BNP Paribas, Citibank N.A. London, Commerzbank Aktiengesellschaft, Crédit Agricole Corporate and Investment Bank, Danske Bank, Deutsche Bank, Handelsbanken, HSBC France, MUFG, Nordea, SEB and Standard Chartered Bank joined as mandated lead arrangers.
Banco Bilbao Vizcaya Argentaria, DNB Bank, Industrial and Commercial Bank of China (Europe), ING Bank, J.P. Morgan Securities, Mizuho Bank, Morgan Stanley Bank International Limited, Natwest Markets, Sumitomo Mitsui Banking Corporation, Société Générale and the Standard Bank South Africa Limited joined as lead arrangers.
Crédit Agricole and SEB acted as sustainability coordinators. MUFG acted as documentation agent and BNP Paribas as facility agent.
Last year, Italian fashion house Prada received the industry’s first sustainability-linked loan, also involving Crédit Agricole,