Singapore-based integrated marine services provider PSA Marine has secured a three-year EUR 30 million equivalent sustainability-linked loan from DBS Bank.
The loan features an interest rate adjustment linked to an Environmental, Social, and Governance (ESG) target. This requires a fleet of PSA Marine’s Crew Transfer Vessels (CTVs) to be substantially deployed to support offshore wind energy-related activities.
The company said that it has strong confidence in its successful business expansion into the offshore wind market in Europe.
PSA Marine’s subsidiary, Ventus Marine Limited, currently owns and operates a fleet of ten CTVs to service the renewable offshore wind market in Europe.
“PSA Marine has grown our business in the renewable energy sector since 2015 as part of our commitment to move towards sustainable energy. We are proud to play a part in supporting the offshore wind industry and will continue to partner with financial institutions and other organisations to explore new opportunities in this space,” said Peter Chew, Managing Director of PSA Marine.
PSA Marine’s other business offerings which help facilitate a transition to a low carbon economy include the provision of CTVs and Service Accommodation Transfer Vessel services to the offshore wind market in Taiwan, among others.
“The investment made in support of the offshore wind market through the sustainability-linked loan reaffirms PSA Marine’s commitment to support a cleaner and greener future. It creates a win-win outcome for our stakeholders as well as the environment,” said Er Wei Lim, VicePresident of Singapore and Head of Corporate Services of PSA Marine.
Since 2018, DBS has done around 100 sustainable finance deals worth over SGD 15 billion and has committed to financing SGD 20 billion in renewable, clean-energy, and green projects by 2024.
“A shift in mindsets by traditionally carbon-intensive industries like transportation towards more sustainable practices is a needed and progressive step in the right direction,” Boey Yin Chong, Managing Director and Global Head of Shipping, Aviation, Logistics and Transportation of DBS, said.
”We are very happy to have supported this with like-minded partners such as PSA Marine. As a bank, we remain committed to supporting this drive and look to structure more such sustainable-structured transactions to further build on our clients’ sustainability agendas which ultimately will become a key and important differentiator in their businesses.”