Wallenius Wilhelmsen secures $800 million in sustainability-related loans

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Parsifal/Source: Wallenius Wilhelmsen

Oslo-listed shipping company Wallenius Wilhelmsen secured $800 million in new loans secured by 20 ships.

The flagship facilities consist of two new funding agreements, with tenors ranging from 5.5 to 6.5 years and were signed with 11 banks on June 30. On August 15, $670 million was drawn down, primarily to pay off $569 million of existing ship debt. The remaining $130 million is available as a revolving line of credit and can be used for general corporate purposes.

The funds are issued under the Sustainability Linked Funding of Wallenius Wilhelmsen, et. interest margins will be adjusted on an annual basis.

That is, if the company meets the interim CO2 intensity target, the margin will decrease by -0.05 percentage points for the following year. If the company does not meet the target, the margin will increase by +0.05 percentage points for the following year.

“We are pleased to close flagship facilities with our banks at attractive prices linked to our emissions reductions,” said Torbjørn Wist, CFO at Wallenius Wilhelmsen.

Wallenius Wilhelmsen said he succeeded in reducing CO2e intensity by 33.6% from 2008 to 2019 and plans to reduce it by a further 27.5% from 2019 to 2030.

“We strive to systematically reduce emissions through a wide range of operational, technical and asset replacement initiatives. Some of them produce a shorter-term effect, while the benefits of others will be realized over the 30-year lifespan of the vessels. In short, we need to drive energy efficiency on a daily and long-term basis,” Wist said.

New financings allow us to extend debt maturities, stretch repayment profiles and build financing capacity for future investment needs. »

The deals are secured by 20 sailboats with an average age of 12 years and a market value of $1.4 billion. As part of the transaction, five older vessels become debt-free, bringing the company’s unencumbered fleet to 12 vessels.

As part of its decarbonization efforts, Wallenius Lines last year earmarked the construction of up to six Pure Car Carrier (PCC) vessels to Chinese shipyard CIMC Raffles. Vessels 200 meters long and 37 meters wide will have 6,500 CFU. They will be fueled by LNG.

The company has also embarked on an ambitious project to build a 7,000 CFU RoRo vessel that will use wind as its primary form of propulsion.

The Oceanbird concept ship is equipped with five wing sails, each approximately 80 meters high. The set of rigid sails, constructed of steel and composite materials, generate forward motion instead of vertical lift. These finned sails can rotate 360° to make the most of the wind and can be lowered to pass under the bridges.

The company operates more than 130 vessels serving 16 trade routes to six continents. The Wallenius Wilhelmsen Group consists of Wallenius Wilhelmsen Ocean, Wallenius Wilhelmsen Solutions, EUKOR and ARC.

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