Wednesday, February 26, 2020

Biggest Global Ocean Shipping and Container Logistics Group Refinances Through 26 Separate Banks

New Deal Lasts Through the Next Lustrum with an Option to Extend
Shipping News Feature

DENMARK – WORLDWIDE – In the world of shipping, as with most other industries, refinancing of a large company can be a complex process. When you are the biggest global container freight carrier however the amount of partners involved can reach extraordinary proportions.

So it is that the first bank refinancing arranged by AP Moller-Maersk after its transformation from a diversified conglomerate to a global container logistics company has involved no less than 26 selected banks working as a syndicate.

The new sustainability-linked revolving credit facility of $5.0 billion refinances the undrawn $5.1bn facility maturing in 2021 and has a tenor of five years which may be extended by up to two years and will be part of the company’s liquidity reserve.

In 2019 Maersk announced its commitment to becoming carbon neutral by 2050. Maersk says the new finance facility affirms its efforts to drive sustainability into its operations and supply chains. The credit margin under the facility will be adjusted based on Maersk’s progress to meet its target of reducing CO2 emissions per cargo moved by 60% by 2030, which is significantly more ambitious than the IMO target of 40% by 2030 (all 2008 baseline). Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands, comments:

“We are determined to reach our ultimate target of becoming fully carbon neutral by 2050, and this agreement serves as another enabler for us to deliver on that ambition. Given the lifespan of our fleet, we need to find new and sustainable solutions to propel our vessels within the next 10 years. To realise this ambitious commitment, we are partnering with researchers, regulators, technology developers, customers, energy providers, and now banks.

”We have received strong support from our global relationship banks. The facility was substantially oversubscribed, and we are pleased with the terms and conditions of the new facility. With the new facility we have extended the maturity profile of our finance commitments, while aligning with our sustainability ones.”

Mandate leaders for the new arrangement were Banco Santander S.A., London Branch, Bank of America Merrill Lynch International Designated Activity Company, Barclays Bank Plc, BNP Paribas, Citibank N.A. London, Commerzbank Aktiengesellschaft, Crédit Agricole Corporate and Investment Bank, Danske Bank A/S, Deutsche Bank, Handelsbanken, HSBC France, MUFG, Nordea, SEB and Standard Chartered Bank.

These were joined by other lead arrangers Banco Bilbao Vizcaya Argentaria, S.A., London branch, DNB Bank ASA, Industrial and Commercial Bank of China (Europe) S.A., Brussels branch, ING Bank, J.P. Morgan Securities Plc, Mizuho Bank, Ltd., Morgan Stanley Bank International Limited, Natwest Markets Plc, Sumitomo Mitsui Banking Corporation, Société Générale and the Standard Bank South Africa Limited, Isle of Man branch.

Meanwhile Crédit Agricole and SEB acted as Sustainability Coordinators. MUFG acted as Documentation Agent and BNP Paribas as Facility Agent.