The Arab Petroleum Investments Corporation (Apicorp) and the National Bank of Fujairah (NBF) have signed a 5-year $108 million debt finance facility for two eco-friendly very large crude carriers (VLCCs) exceeding IMO’s energy-efficiency parameters. 

 

The agreement was with Hartree Maritime Partners, LLC (HMP), the shipping affiliate of Hartree Partners, a global energy and commodities firm, which will contribute to  boosting maritime sustainability. 

 

The facility, in which Apicorp acted as the Mandated Arranger and Facility Agent, will be utilised to finance HMP’s purchase of two cutting-edge VLCCs. 

 

The ships are fitted with advanced emissions technologies which exceed the United Nations’ International Maritime Organisation’s (IMO) 2020 energy-efficiency parameters and Sustainability Development Goals. 

 

Built by South Korea-based Daewoo Shipbuilding and Marine Engineering, the ships feature advanced digitalisation and artificial intelligence technologies, Eco-Scrubbers, next-generation hull designs, and highly efficient engines which reduce fuel consumption and emissions by 25% to 30%. 

 

Commenting on the agreement, Dr Ahmed Ahmed Ali Attiga, CEO of Apicorp said: “The partnership is in line with Apicorp’s recently launched ESG framework, which re-enforces our commitment to sustainability in the energy sector. With around 2 billion metric tonnes of crude oil shipped via waterways in 2020, the maritime industry represents a significant opportunity to promote sustainable practices, mitigate environmental risks, and address climate change challenges.”

 

Vince Cook, CEO of NBF, said:  “A key driver in promoting sustainability is the lending role that banks play in supporting and financing projects aimed at expanding and enhancing the application of sustainability practices. It is great to partner with Apicorp in co-financing such initiatives aligned with our goal of promoting lending to sustainable projects. 

 

“This is another step in supporting UAE’s national agenda for transformation to a green economy in line with UAE Energy Strategy 2050 and the Dubai Declaration of all banks, cementing NBF’s position as the best financial partner for business.” 

 

Guy Merison, Founding Managing Director of Hartree Partners, said: “Our investment in these two cutting-edge vessels enables us to continue delivering outstanding service to our customers worldwide while at the same time helping to enhance sustainable practices within the maritime shipping industry.”

 

Apicorp’s green financing and investment portfolio has quadrupled over the past 5 years to $550 million - more than 13% of the multilateral development bank’s overall portfolio. 

 

In addition, Apicorp recently announced that it will allocate $1 billion over the next two years to accelerate the energy transition in the Mena region, as well as conduct a full assessment of the ESG footprint of all its assets by end of 2023.-- TradeArabia News Service