Norway's Avance Gas has completed a $104m newbuilding finance round linked to environmental performance.
The John Fredriksen-controlled VLGC owner said the sustainability-linked term facility has been arranged with a syndicate of unnamed banks.
The cash will finance the Avance Polaris and Avance Capella, the first of six dual-fuel newbuildings that are scheduled for delivery in the last quarter of this year and the first three months of 2022.
The facility matures over five years from the second delivery from Daewoo Shipbuilding and Marine Engineering.
The interest rate can be adjusted according to green targets.
Outperforming Poseidon
Avance Gas said it intends to reduce and outperform the carbon-intensity levels set in the Poseidon Principles for lenders.
"The dual-fuel newbuildings will significantly lower our carbon footprint and the sustainability-linked financing further demonstrates our commitment to decarbonisation of the shipping industry with support from the bank syndicate in this facility," the company said.
In June, the shipowner said it is relaxed about incoming VLGC newbuildings due to heavy drydocking schedules and continuing shipping delays.
The company noted that ordering activity has picked up for the sector, with 66 ships contracted at yards, compared to 310 vessels on the water.
But, in the near term, the Oslo-listed outfit said it expects the effect of the orderbook to be muted due to a busy dry docking schedule of between 55 and 70 VLGCs in each of 2021 and 2022.
Avance Gas reported $18.9m in net profit in the first quarter, up from $15.1m a year earlier, as voyage expenses were cut.
Revenue dropped to $62.5m against $68.1m.(Copyright)
