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Maersk gets sustainability-linked revolving credit
07 Mar '20
2 min read
Pic: Maersk
A P Moller-Maersk, an integrated container logistics company working to connect its customers’ supply chains, has earned a new sustainability-linked revolving credit facility of $5.0 billion through a syndicate of 26 selected banks. This is the first bank refinancing for Maersk after it became a container logistics company from a diversified conglomerate.
The facility refinances the undrawn $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. With the new facility we have extended the maturity profile of our finance commitments, while aligning with our sustainability ones,” highlights Henriette Hallberg Thygesen, CEO of Fleet and Strategic Brands.
The credit margin under the facility will be adjusted based on Maersk’s progress to meet its target of reducing carbon dioxide emissions per cargo moved by 60 per cent by 2030, which is significantly more ambitious than the IMO target of 40 per cent by 2030 (all 2008 baseline).
In 2018 Maersk announced its commitment to becoming carbon neutral by 2050. The new finance facility affirms 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. Given the lifespan of our fleet, we need to find new and sustainable solutions to propel our vessels within the next 10 years. To realise this ambitious commitment, we are partnering with researchers, regulators, technology developers, customers, energy providers – and now banks," explains Thygesen.
The facility refinances the undrawn $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. With the new facility we have extended the maturity profile of our finance commitments, while aligning with our sustainability ones,” highlights Henriette Hallberg Thygesen, CEO of Fleet and Strategic Brands.
The credit margin under the facility will be adjusted based on Maersk’s progress to meet its target of reducing carbon dioxide emissions per cargo moved by 60 per cent by 2030, which is significantly more ambitious than the IMO target of 40 per cent by 2030 (all 2008 baseline).
In 2018 Maersk announced its commitment to becoming carbon neutral by 2050. The new finance facility affirms 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. Given the lifespan of our fleet, we need to find new and sustainable solutions to propel our vessels within the next 10 years. To realise this ambitious commitment, we are partnering with researchers, regulators, technology developers, customers, energy providers – and now banks," explains Thygesen.
Fibre2Fashion News Desk (SV)
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