Pacific Basin Shipping Limited (“Pacific Basin” or the “Company”, 2343.HK), one of the world’s leading dry bulk shipping companies, has today successfully closed a new US$250 million Sustainability-Linked 7-year Senior Secured Committed Revolving Credit Facility (the “Facility”) for general corporate purposes.
 

Mr. Martin Fruergaard, CEO of Pacific Basin, said: “This is our second sustainability-linked financing facility which serves to extend our funding profile, reinforce our commitment to sustainable shipping, and strengthen our financial capacity as we continue to pursue growth opportunities arising especially in these times of uncertainty and turbulence. The Facility's competitive pricing and oversubscription reflect the market's support for Pacific Basin, our growth strategy and our initiatives to drive the resilience and long-term financial performance of our Company in an increasingly complex international business landscape.”
 

BNP Paribas (“BNPP”), Citigroup Global Markets Asia Limited (“Citi”) and The Hongkong and Shanghai Banking Corporation Limited (“HSBC”) acted as the Joint Coordinating Mandated Lead Arrangers, Bookrunners, and Joint Global Coordinators of the Facility. The syndicate for the Facility also includes Credit Agricole Corporate and Investment Bank, Iyo Bank Limited, KDB Asia Limited, Standard Chartered Bank, SBI Shinsei Bank Limited and Skandinaviska Enskilda Banken AB (publ). BNPP is the Sustainability Coordinator.
 

The Facility aligns financing with Pacific Basin’s corporate sustainability agenda by incorporating a tiered pricing mechanism that adjusts the interest margin based on actual performance (with reference to predetermined key performance indicators (“KPIs”)) against annual sustainability performance targets (“SPTs”). The chosen KPIs and SPTs relate to carbon intensity and crew safety, which are material environmental and social criteria in the shipping industry that Pacific Basin prioritises among its most important sustainability issues.
 

Pacific Basin engaged Moody’s Investors Service (“Moody’s”), a leading global provider of credit ratings, research and risk analysis, to provide a second party opinion that opines on the relevance of the KPIs and robustness of the SPTs, and on their alignment with Pacific Basin’s sustainability ambitions, including targeting net zero by 2050 and safeguarding the safety, security, health and wellbeing of the Company’s staff at sea.
 

Moody’s second party opinion assessment includes the following summary findings:
Sustainability Quality Score: SQS2 (Very Good)
Alignment with Principles: Best Practices
Contribution to Sustainability: Significant

source: Pacific Basin

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