Ship Finance: Crédit Agricole CIB wins 4 Marine Money Deal of the Year Awards 2020!

Crédit Agricole CIB has been awarded Deal of the Year 2020 for 4 ship finance transactions by Marine Money including a Green Finance deal and a Sustainability-Linked deal.

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Crédit Agricole CIB won 4 awards, in the following categories:

  • Deal of the Year 2020 – Institutional Debt, for CMA CGM's €525 million unsecured bond
  • Deal of the Year 2020 – Sustainability-Linked,for International Seaways' $390 million senior secured facility
  • Deal of the Year 2020 – Green Finance - Green Loan, for Hapag-Lloyd's $417 million green loan
  • Deal of the Year 2020 – Bank Debt – West, for GasLog's US$576.9m loan

 

Photo de Thibaud Escoffier“We are proud to have been nominated by Marine Money for these prominent industry awards. This is a major acknowledgment of the strength of our ship finance franchise and a recognition of the consistent support that Crédit Agricole CIB bring to its clients in the Shipping sector.” 

Thibaud Escoffier, Global Head of Ship Finance

 

 

Deal of the Year 2020 - Institutional Debt: CMA CGM's €525 million unsecured bond

On October 21, 2020, the French container transportation and shipping company CMA CGM issued an unsecured bond amounting to €525 million, maturing in January 2026 and bearing a 7.5% coupon. The proceeds of the bond issue were used to early repay the outstanding nominal amount of €525 million related to the €725 million unsecured Notes (nominal amount), voluntarily redeemed in part in June 2020 for €200 million, issued by CMA CGM and initially maturing in January 2021.

CMA CGM had benefited from much improved business and market conditions since the beginning of the Covid-19 crisis illustrated by the change in outlook (to positive) from both Moody's and S&P.
 

Photo de Jérôme Leblond“Crédit Agricole CIB was very pleased to have been selected once again by our client as Joint Bookrunner, a position that we have had and held since 2017. It does illustrate the quality of the multi-metiers relationship that we have had for several decades with the world’s third largest container company. Last but not least, thanks to one of the most pro-active and ambitious sustainability strategies in the shipping industry illustrated by the largest number of operated vessels with Liquefied Natural Gas propulsion, CMA CGM perfectly fits Crédit Agricole CIB’s own decarbonisation strategy.”

Jérôme Leblond, Head of Paris Ship Finance team

 

Deal of the Year 2020 - Sustainability-Linked: International Seaways' $390 million senior secured facility

In January 2020, the tanker company International Seaways Inc. (INSW) successfully closed a $390 million senior secured facility for which Crédit Agricole CIB acted as Joint Bookrunner and Mandated Lead Arranger.

This facility is the first ever financing structured with a sustainability-linked pricing mechanism for a New York Stock Exchange (NYSE)-listed ship-owner
The sustainability mechanism incentivizes INSW to achieve carbon emission targets by way of a margin discount earned achieving reductions in its carbon emission intensity. If the fleet sustainability score improved compared to the prior fiscal year, the Company is rewarded with a pricing reduction. Similarly, if INSW’s score deteriorates the pricing increases. 

The sustainability score is calculated based on the Poseidon Principles’ Annual Efficiency Ratio (AER) Trajectory methodology where the fleet carbon intensity will be compared to a pre-determined trajectory. This mechanism implemented with a NYSE-listed ship-owner established a blueprint for future sustainability financing and created a much needed momentum in the shipping industry, effectively making this financing a landmark transaction for 2020.
 

Photo de Jérôme Duval“We are proud to have contributed to the structuring of this landmark transaction which sets the tone with regards to the reduction of Co2 emissions, reductions which we are committed to further instill to the industry.”

Jérôme Duval, Head of New York Ship Finance team

 

 

Deal of the Year 2020 - Green Finance - Green Loan: Hapag-Lloyd's $417 million green loan

The container shipping company, Hapag-Lloyd, obtained a $417 million green loan to finance three 23,500 TEU containerships, to be deployed on the Europe-Far East routes. The vessels will be powered by an LNG dual fuel engine, which will lower Co2 emissions by 30% and up to 100% of other greenhouse gases and particulates.

The Export Credit Agency (ECA) facility is backed by the Korea Trade Insurance Corporation (K-SURE).
 

Photo d'Oliver Hermanns“We are glad that Hapag-Lloyd’s strong commitment to emissions reductions was recognised by this award. We regularly advise Hapag-Lloyd on sustainability issues, lately as Green adviser on their Sustainability High Yield bond issued March 2021.”

Oliver Hermanns, Head of Hamburg Ship finance team

 

 

Deal of the Year 2020 - Bank Debt – West: GasLog's US$576.9m loan

The US$576.9m loan was an important refinancing step for the global provider of Liquefied Natural Gas (LNG) shipping services, GasLog, in 2020 to extend out its repayment profile.

Based on its historical relationship with the group, Crédit Agricole CIB joined this well-structured transaction as Lead Arranger, which syndicated well to a close group of relationship banks.

Photo de Justin Lande“GasLog is a leading LNG Shipping company, which we have accompanied in its development for many years. We are glad to have been involved in this landmark refinancing, which provides GasLog with visibility to address its future growth.”

Justin Lande, Head of London Ship finance team