Star Bulk Carriers Scores USD 310 Mn Green Loan to Buy Scrubbers, Refinance Ships

etros Pappas, CEO of StarbulkPetros Pappas, CEO of Starbulk: Image Courtesy: Capital Link

Greek dry bulk shipping company Star Bulk Carriers Corp. has secured a USD 310 million loan, which includes a portion of UD 70 million intended for procurement and retrofitting of scrubbers for up to 50 vessels in the company’s fleet.

The Green Loan Tranche has been certified by DNV GL Business Assurance Services Limited to be aligned with the Green Loan Principles.

“The completion of this financing is an important milestone for Star Bulk and its lending partners, who are pioneering sustainable Green Loans for dry bulk shipping investments, which aim to promote maritime emission reductions and compliance with the 2020 IMO regulations,” the company said.

The Green Loan Tranche has a margin of 280 basis points over LIBOR and an amortization profile of 4.5 years.

The remaining USD 240 million were drawn on September 28, 2018 and refinanced in full a group of 26 vessels, including 4 Newcastlemax, 4 Capesize, 2 Post Panamax, 14 Kamsarmax and 2 Supramax vessels.

DNB Bank ASA, acted as the mandated lead arranger, facility agent and coordinator, along with ABN AMRO Bank N.V, BNP Paribas, Danish Ship Finance A/S and Skandinaviska Enskilda Banken AB as mandated lead arrangers.

Last month, Star Bulk revealed its plans to equip its entire fleet with scrubbers systems to meet the 2020 sulphur cap. The company expects average cost, including installation, to be below USD 2 million per vessel.

The identity of the shipyards entrusted with the installation remained undisclosed, while in approximately 35% of the installations, riding teams are being deployed to carry out the retrofitting works onboard the vessels while at sea, reducing off hire time by 50% to 60%.

Star Bulk completed the first scrubber installation at sea in August.

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