11.4 C
Tuesday, June 18, 2024
Home News X-Press Feeders secures sustainability-linked loan

X-Press Feeders secures sustainability-linked loan

X-Press Feeders (XPF) has signed a sustainability-linked loan agreement with investors including the Asian Infrastructure Investment Bank (AIIB).

The loan is expected to support X-Press Feeders in its ambitions to significantly reduce carbon emissions.

X-Press Feeders is using proceeds from the US$165 million loan to finance the purchase of three 7,000 TEU newbuild container ships, supporting the company’s large fleet renewal programme and replacing older, less-efficient vessels with new, more fuel-efficient ones.

"Sustainability-linked finance incentivises the achievement of environmental, social or governance targets through pricing incentives," said the company.

"This financing is XPF’s first sustainability-linked loan, and pricing incentives are tied to our commitment to reduce the Annual Efficiency Ratio of our fleet by 40% between 2019 and 2027," added X-Press Feeders.

"The target, which will be reviewed in 2027, ties with XPF’s global emission reduction target of halving our absolute emissions by 2040 and achieving net-zero emissions by 2050, supporting the broader shipping industry’s efforts to align itself with the Paris Agreement," it noted.

Latest Posts

OrbitMI guides navigation through complex digital landscape for sound tech adoption

The maritime software market is teeming with numerous vendors offering a wide array of technologies aimed at achieving data-driven operational efficiencies. These efficiencies are crucial...

Navigating the Changing Tides of the Container Shipping Industry in East Asia

As East Asia's container shipping industry sails into uncharted waters, it faces a shifting tide of customer demand reshaping the very foundations of maritime...

Spot rate growth slows but ocean container shipping market will remain extremely challenging

Ocean freight container shipping spot rates are set to increase further, but there are signs the recent dramatic growth may be slowing. The latest data...

Sweden-Belgium Green Shipping Corridor project enhanced with new partner

Port of Gothenburg, North Sea Port, and the Danish international shipping and logistics company DFDS have welcomed the Port of Antwerp-Bruges to the Green...

Containers lost at sea at record low levels

The World Shipping Council (WSC) has released its annual report on containers lost at sea, revealing a significant decrease to 221 boxes lost in...