Multi-sector industry coalition SEA\LNG, which is committed to accelerating adoption of LNG as a marine fuel, has added its first financial institution, Societe Generale.
As the 0.5% global sulphur cap from January 2020 edges ever closer, the case for LNG as a marine fuel continues to gather momentum.
“Innovative financing is a core component to breaking down barriers to adoption and Societe Generale is at the forefront of developing frameworks to support this evolution,” Peter Keller, SEA\LNG chairman and executive vice president, Tote, said.
Societe Generale’s commitment to financing alternative solutions – which support the development of green maritime transport – is demonstrated by its involvement in the first transaction for the European Union’s recently instituted Green Shipping Guarantee programme.
The institution acted as the sole mandated lead arranger, lease investor, facility and security agent, hedge provider, and lender in a EUR 142.6 million French lease financing of Honfleur, the first LNG-powered ferry to be commissioned by Brittany Ferries, with a funded guarantee from the European Investment Bank.
“The use of LNG as a marine fuel is gradually becoming a global reality. In line with our wider environmental commitment to promoting greener solutions, Societe Generale recognises the benefits of LNG in lowering local pollution and greenhouse gas emissions, when compared with traditional marine fuels,” Paul Taylor, Global Head of Shipping Finance, Societe Generale Corporate & Investment Banking, said.
Taylor continued that Societe Generale wants to play a key role in supporting the SEA\LNG coalition to realise its goal of making LNG a viable maritime fuel for 2020 and beyond.