A.P. Moller – Maersk has launched its Green Finance Framework to issue a range of sustainable financing instruments which may include bonds, loans, project finance and other instruments for the fund of its first green methanol vessels.
“Issuing Green Financing Instruments is a further step to integrating sustainability into our financing operations as it is an effective tool for channelling investments to projects with positive environmental impact and thereby contributing to the achievement of the United Nations Sustainable Development Goals (SDG) and the Paris Agreement,” stated Patrick Jany, Chief Financial Officer (CFO) at A.P. Moller – Maersk.
Jany also noted that with the green bond, the company aims at diversifying its investor base by reaching out to new investors and increasing the transparency of its environmental, social, and governance (ESG) ambitions, as well as performance even further towards its stakeholders.
The global provider of green ratings, Cicero Green was appointed to review Maersk’s Green Finance Framework and ultimately verify its alignment with the International Capital Market Association (ICMA) Green Bond Principles 2021, the Green Loan Principles 2021 and market practices.
Maersk’s Green Finance Framework has received a Cicero Medium Green shading and a governance score of Excellent, based on the overall assessment of the eligible green assets under this framework and governance and transparency considerations.
By establishing the new Green Finance Framework, Maersk intends to align its funding strategy with its goal to become carbon neutral by 2050.
The Danish company has successfully placed its inaugural 10-year, US$565.1 million (€500 million) green bond to fund the construction of its first feeder vessel and the series of eight large container vessels, which will be capable of operating on carbon-neutral methanol by 2023 and 2024, respectively.
The transaction was met with strong demand with a final order book at US$4.18 billion (€3.7 billion) and it was priced at a coupon of 0.75%, which is the lowest annual interest ever for Maersk.
