PROW Capital has announced the launch of the green shipping fund (GSF), a EUR 420 million debt fund that provides credit to shipowners for investments in new and existing vessels or retrofits that demonstrate measurable emissions reductions.
The funding of GSF has been structured and arranged in close cooperation with Banco Santander and supported by FPG AIM.
The maritime industry needs significant investment to accelerate its transition to a zero emissions industry, on top of the investment needed to meet the increasing demand for seaborne transportation. PROW Capital’s ambition is to make zero emissions shipping a reality and become a viable long-term financing alternative for vessel owners that complements traditional bank financing in the maritime sector.
To qualify for GSF financing, vessels must outperform relevant emissions regulations. With an average loan size of EUR 15 – 50 million and strict eligibility criteria, GSF provides competitively priced pre- and post-delivery senior secured debt financing to short- and deep-sea vessel owners located in Europe.
For investors, GSF provides investments with impact, generating significant emissions savings, an appropriate risk adjusted financial return and supports investors’ corporate, social and environmental commitments. PROW Capital monitors vessel emissions data and transparently reports independently validated CO2, NOx, SOx and PM emissions reductions.
PROW Capital was founded in 2020 by a team of maritime technology, finance and sustainability professionals. PROW is based in Amsterdam, the Netherlands, and is registered by The Dutch Authority for Financial Markets (AFM). PROW Capital is a member of the Getting to Zero coalition.
“We are driven by the scale of the impact we can make. Against a backdrop of worldwide deleveraging, retrenchment of sector banks and increasing international urgency to tackle climate change, we are providing a new approach to ship financing, working collaboratively to deliver green deals to meet the industry’s drive to reduce its impact on the planet,” said PROW’s Menno van Lacum.
Royal Association of Netherlands Shipowners’ (KVNR) Annet Koster said: “Shipowners are increasing their sustainability efforts to reduce GHG emissions of their fleets, but they need more access to finance. Not only in the Netherlands, but across Europe. Alternative finance is needed to accelerate and reach climate goals. PROW Capital entering the market offers just that”.