Star Bulk secures loan for retrofit of 50 scrubbers

Star Bulk secures loan for retrofit of 50 scrubbers

Star Bulk Carriers has entered into a US $310 million loan agreement, which includes a $70 million tranche, known as the Green Loan Tranche, that will exclusively finance the procurement and retrofitting of scrubbers for up to 50 vessels in Star Bulk’s fleet.

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

DNB Bank acted as the Mandated Lead Arranger, Facility Agent and Coordinator, along with ABN AMRO Bank N.V BNP Paribas, Danish Ship Finance, and Skandinaviska Enskilda Banken Mandated Lead Arrangers.

Star Bulk and its lending partners say the completion of this loan is an important milestone as they work towards pioneering sustainable Green Loans for dry bulk shipping investments, which aim to promote maritime emission reductions and compliance with the 2020 IMO regulations.

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

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