Klaveness in Norway’s first green newbuild finance deal

Written by Nick Blenkey
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Klaveness CLEANBU vessel, MV Barracuda

In what is claimed as a first for a Norwegian shipowner, Klaveness Combination Carriers ASA (KCC) has secured a $60 million sustainability linked term loan and revolving credit facility for the financing of the seventh and eight of its CLEANBU vessel newbuildings set for delivery in 2021. Nordea is acting as coordinator and bookrunner for the financing and Credit Agricole CIB as sustainability agent.

The credit margin will be adjusted, up or down, based on KCC’s sustainability performance, as defined by the company’s ability to meet its goal of reducing CO2 emissions per ton of transported cargo per nautical mile (EEOI) and reducing absolute CO2 emissions per vessel.

KCC’s ambition is to be carbon neutral by 2030, to reach IMO’s carbon intensity target for 2030 already in 2022 and to reduce absolute emissions per vessel by 15% from 2018 to 2022. On its path to these goals, KCC’s sustainability performance/KPIs will be disclosed on a quarterly basis and main KPIs will be subject to an annual external audit.

KCC’s CLEANBU combination carriers are built for transportation of both wet and dry bulk cargoes and are operated in trades where they can carry a wet cargo one way and a dry cargo the other, or vice versa.

“We strongly believe in the greening of capital and that access to competitive funding going forward will be based on the ability to deliver green transformation. Linking pricing to emissions performance demonstrates our commitment towards our targets to substantially improve CO2 efficiency in our fleet.” says Liv Dyrnes, CFO of Klaveness Combination Carriers ASA, and adds: “This facility shows us that sustainability ambitions pay off and we are pleased to co-operate with banks that have the same ambitions as us when it comes to sustainability”.

“Credit Agricole CIB is very proud to support KCC in its ambitious route to carbon neutrality by 2030. With a tailor-made solution indexed on KCC sustainability performance regarding its decarbonization pathway, Credit Agricole CIB is supporting both in investing in new and energy efficient vessels and in committing itself towards sustainability strategy objectives,” says Tanguy Claquin, Head of Sustainability within Credit Agricole CIB.

“Nordea is very pleased to have acted as Coordinator and Bookrunner in this transaction where KCC is setting out on an ambitious path to be carbon neutral by 2030. It is key for us to support our customers in their green transition both through advisory and products and this transaction is a strong testament to that. Nordea would like to congratulate all parties involved, and look forward to further cooperation with one of the frontrunners within sustainability in the shipping space,” says Ylva Hannestad, Deputy Head of Group Sustainable Finance in Nordea.

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