Hafnia and CSSC Shipping secure financing for two LNG-powered tankers

Vista Shipping, a joint venture between Singapore’s Hafnia and CSSC Shipping Hong Kong, has secured an $89.6 million sustainability-linked loan to finance the purchase of its first two LNG-powered tankers.

Standard Chartered, which acted as the facility coordinator, sole sustainability co-ordinator, mandated lead arranger, and facility and security agent for the transaction, said this in a statement on Tuesday.

Also, the bank assisted Vista Shipping in securing a second party opinion on this loan from classification society DNV, it said.

The arrangement introduced ambitious targets on annual efficiency ratio and sulfur oxide emissions over a 10-year period, and has a bi-directional margin ratchet mechanism to incentivize performance in meeting these targets, Standard Chartered said.

In addition, the delivered vessels must also adhere to Hafnia’s environmental management system, which seeks to minimize adverse environmental effects and ensures that contractors follow clear EMS requirements around measurement and monitoring of environmental effects, it said.

Earlier this month, China’s Guangzhou Shipyard International (GSI) delivered the first of these LNG-powered tankers to Hafnia and CSSC Shipping.

GSI handed over the 110,000-dwt LNG-dual fuel crude oil and product tanker, Hafnia Languedoc, during a ceremony held on March 15.

CSSC’s GSI launched the second ship, Hafnia Loire, in December and this ship should be delivered in April.

Both of the tankers will serve France’s TotalEnergies under charter deals.

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