.gif)
X-Press Feeders signs sustainability-linked loan agreement
X-Press Feeders (“XPF”) has signed a sustainability-linked loan agreement with investors including the Asian Infrastructure Investment Bank which will support XPF in our ambitions to significantly reduce carbon emissions.
XPF is using proceeds from the US$165 million loan to finance the purchase of three 7,000 TEU newbuild containerships, supporting the company’s large fleet renewal program and replacing older, less-efficient vessels with new, more fuel-efficient ones.
Sustainability-linked finance incentivises the achievement of environmental, social or governance targets through pricing incentives. This financing is XPF’s first sustainability-linked loan, and pricing incentives are tied to their commitment to reduce the Annual Efficiency Ratio (“AER”) of their fleet by 40 percent between 2019 and 2027. The target, which will be reviewed in 2027, ties with XPF’s global emission reduction target of halving their absolute emissions by 2040 and achieving net-zero emissions by 2050, supporting the broader shipping industry’s efforts to align itself with the Paris Agreement.