| Code: 229143 |

Euronav fixes $95M in green financing

Belgian tanker owner Euronav NV has signed an €80 million ($95 million) sustainability-linked financing deal, the company revealed.

TINNews |

Belgian tanker owner Euronav NV has signed an €80 million ($95 million) sustainability-linked financing deal, the company revealed.

The move brings the share of facilities with an integrated sustainability component in the company’s total to 31.5%.

The unsecured revolving credit facility has been concluded with KBC, ABN Amro, Belfius, ING, Societé Generale, BNP Paribas and SEB, supported by Gigarant.

Monitoring of the company’s year-on-year reduction in C02 emissions will start from 2021 and will be supported by compliance with the Poseidon Principles.

Basically, the core trajectory being followed is the IMO target of cutting shipping’s greenhouse gas emissions by 50 percent by 2050 when compared to 2008 levels.

Euronav said that the flexible financing allows the company to strengthen its financial buffers for daily cash management.

“Sustainability is at the core of what we do at Euronav, with the financing of our operations being a critical part of this approach,” says Lieve Logghe, CFO of Euronav.

“Diversifying our funding sources whilst at the same time providing challenging and quantifiable targets for our sustainability progress are dual objectives for Euronav.” 

The facility will have a duration of minimum 3 years, with two 1-year extension options.

2020 a year to remember

Euronav reported its best financial performance in 2020, with a profit of $473 million, a major rebound from $ 112 million reported in 2019.

Hugo De Stoop, CEO of Euronav, described 2020 as one of the most tumultuous years in tanker market history driven by demand and supply swings resulting from the COVID-19 pandemic and geopolitical developments.

As explained, current market conditions are amongst the most challenging in recent memory for crude tanker operators as COVID-19 consequences continue to impact the demand for crude oil.

“As a result, the market remains unbalanced with too many ships chasing too few cargoes. Whilst some encouraging signs are emerging, like the price of scrap steel, a driver of ship recycling activity, traction with crude consumption returning to more normalized preCOVID-19 levels is required to drive a return to the sector profitability,” he pointed out commenting on the 2020 performance.

 

#END News

Related News

Send Comment

Multimedia