FEBRUARY 20, 2018 — The European Investment Bank (EIB) and Netherlands headquartered ING Bank have signed an agreement to support EUR 300 million (about $370 million) of green investments for the European shipping market.
ING and EIB will each contribute EUR 150 million to the facility. They say that the agreement will ensure that sponsors of green and sustainable projects in the maritime transport sector can benefit from advantageous financial terms.
The facility is available to clients with significant European interests, and can be used for projects with a green innovation element covering the construction of new vessels or retrofitting of existing vessels. It applies to both inland shipping and seagoing operators.
To create a diversified portfolio, the EUR 300 million facility will be invested with the EIB gradually over the next three years, with ING’s shipping team leading and managing the commitment. The deal also benefits from the guarantee of the European Fund for Strategic Investments (EFSI)
“I think it’s no secret that the shipping sector is a major contributor to CO2 emissions. Climate action is one of the EIB’s top priorities, and this type of financing should be seen as an incentive for ship owners to consider doing things differently. ” said EIB President Werner Hoyer. “The facility was set up after numerous discussions with Dutch counterparts from the public and private sector and aims to help the shipping sector transition to a greener future. “
Isabel Fernandez, Head of Wholesale Banking at ING, added: “Sustainability is an important strategic priority for ING and we are very proud to partner with the EIB to encourage our shipping clients to think about more green and sustainable financing options. This agreement helps us support our shipping clients into making changes to their business models by adapting for the future in increasingly sustainable way, and supports them throughout their green journey.”
The facility is meant for projects that will improve the environmental performance of vessels in terms of reducing the emission of pollutants as well as increasing fuel efficiency. Projects should be presented to ING and will be subject to ING’s financial and non-financial risk acceptance criteria.
The investment has been made under the Green Shipping Guarantee (GSG) Program which is supported by the EU’s Connecting Europe Facility (CEF) Debt Instrument and the European Fund for Strategic investments (EFSI). The program is designed both for general fleet renewal and the retrofitting of ships with sustainable technologies.