News
Landmark transaction in the global shipping sector – first certified sustainable shipping loan
Rotterdam, 22 January 2016
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AMSTERDAM, January 22, 2016 — Anthony Veder Group (Issuer), ABN AMRO (Sole Arranger) and Delta Lloyd Asset Management (Sole Investor) are pleased to announce that the Anthony Veder €66 million Euro Private Placement concluded in the fourth quarter of 2015 has been confirmed as the first sustainable shipping loan. The loan is fully certified according to the Clean Shipping Index Guidelines by Bureau Veritas, which also verified the sustainable credentials of this transaction. This is a landmark transaction in the global shipping industry which to date, has not joined the ranks of verified sustainable financing.
The transaction was solely arranged by ABN AMRO on behalf of Anthony Veder Group as a European Private Placement to finance the building of the 18,000 cubic metre Ice Class 1A Super LNG carrier Coral EnergICE, which uses the boil off of its cargo to fuel the propulsion of the vessel. Liquefied Natural Gas (LNG) fuelled vessels eliminate the usage of heavy fuel oil (HFO) which contributes not only to a reduction of carbon emissions, but also to a significant reduction of nitrogen oxide emissions (NOx) and gives a near 100% reduction of sulfur emissions (SOx) and particulate matter emissions. Apart from air emissions, Anthony Veder also aims to reduce the impact on marine life by choosing green options when it comes to using chemicals in antifouling, lubricants and ballast water treatment. The vessel will be on a long term time charter contract with Gasum (Finland) to serve its 100% subsidiary Skangas.
The financing has been structured as a 20 year European Private Placement and placed with Delta Lloyd Asset Management. ABN AMRO worked with Anthony Veder Group to create a Sustainable Shipping Framework (“Framework”) and managed the process with Clean Shipping Index and Bureau Veritas, which verified the vessel’s compliance with applicable sustainability principles. The Framework is based on two pillars. First, the Framework includes a positive evaluation of the environmental performance of the vessel design, according to Clean Shipping Index, a benchmarking tool to evaluate the environmental performance of ships and carriers. Secondly, it received an above par score on the sustainability assessment of Anthony Veder Group using the Shipping Sustainability Assessment Tool developed by ABN AMRO. The Framework is based on the Green Bond Principles. Bureau Veritas provided a positive second opinion on the transaction’s sustainable credentials.
Certification of the financing is the result of (i) Anthony Veder’s dedication to sustainable shipping, (ii) the eco-friendly design of the LNG vessel, (iii) sourcing and use of the product to reduce emissions in Finland by Gasum/ Skangas, and (iv) ABN AMRO’s expertise in sustainable financing.
Jan Valkier, CEO Anthony Veder: “The creation of this Framework reflects our commitment to developing cost and energy-efficient solutions for small to mid-size LNG carriers and we are extremely pleased with this innovative transaction and the professional and efficient manner in which ABN AMRO and Delta Lloyd managed this process.”
Gust Biesbroeck, Global Head of Transportation Clients: “ABN AMRO is very pleased to have arranged such a landmark sustainable transaction in the global shipping sector. This transaction is evidence of Anthony Veder’s leadership in sustainable shipping and represents many of our core values including our commitment to our clients to deliver the most attractive financing and our commitment to a sustainable future for the global shipping industry.”
Jacco Maters, CEO Delta Lloyd Asset Management: “As an investor, Delta Lloyd Asset Management can contribute to a better world by taking into account the impact of its investments on people and the environment. Delta Lloyd’s participation in this sustainable shipping loan is a testimony to this commitment.”
Merijn Hougee, Clean Shipping Index: “This is a unique deal. ABN AMRO and Delta Lloyd are the first financial institutions to perform a thorough sustainability assessment of a ship design during the loan approval process. Investing in clean ships is a key driver for enhancing the environmental development of the maritime industry and sets a good example for other banks and investors.”
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