Global dry bulk shipping company Star Bulk (Nasdaq: SBLK, Oslo: SBLK?R) has announced it has entered into a $310 million loan agreement, of which $70 million is set aside exclusively for financing the procurement and installation of scrubbers for approximately 50 vessels in Star Bulk’s fleet.
Star Bulk says the loan’s $70 million tranche, which it calls “Green Loan Tranche”, represents a “pioneering” loan agreement for the dry bulk sector as owners prepare for the IMO 2020 low sulphur fuel rules.
“The Green Loan Tranche has been certified by DNV GL Business Assurance Services Limited (DNV GL) to be aligned with the Green Loan Principles. The completion of this financing is an important milestone for Star Bulk and its lending partners, who are pioneering sustainable Green Loans for dry bulk shipping investments, which aim to promote maritime emission reductions and compliance with the 2020 IMO regulations,” Star Bulk said in a press release.
The remaining $240 million was drawn on September 28, 2018 and used to refinance 26 vessels, namely 4 Newcastlemax, 4 Capesize, 2 Post Panamax, 14 Kamsarmax and 2 Supramax vessels.
Star Bulk said Green Loan Tranche has a margin of 280 basis points over LIBOR and an amortization profile of 4.5 years.