Norton Rose Fulbright advises on sustainability-linked financing package

Global law firm Norton Rose Fulbright has advised the International Finance Corporation (IFC) on a sustainability-linked financing for five Singapore incorporated subsidiaries of Precious Shipping Public Company Limited (PSL).

PSL, which is listed on the Stock Exchange of Thailand, is one of the largest pure dry cargo ship-owning companies operating in the Handysize, Supramax and Ultramax sectors of the tramp freight market.

The US$85 million financing package comprised an IFC A loan of US$55 million, a parallel loan of US$15 million from the state-owned Export-Import Bank of Thailand, and an IFC B loan of US$15 million from TMBThanachart Bank Public Company Limited.

The cross-border team, advising IFC was led by Singapore shipping partner Sue Ann Gan and Nick Merritt and included counsel Aditya Rebbapragada and associates Chryso Campbell-Platt and Zara Loh. Bangkok partner Tassanai Kiratisountorn and associate Anuwat Chaisakdanukoon advised IFC on Thai law related matters on the financing. Singapore partner Colin Rice together with senior associate Nivedita Raghavan provided advice on derivatives-related aspects of the financing.

Sue Ann Gan commented: “We are pleased to have advised the lenders, led by IFC, a member of the World Bank Group, on this financing, which shows their commitment to strengthening maritime logistics underpinning infrastructure development in South Asia. This is also PSL’s first sustainability-linked financing, and a remarkable effort to integrate sustainability into their everyday operations.”

Other than shipping sustainability-linked loans, Norton Rose Fulbright’s Singapore team have also recently advised Japan International Cooperation Agency (JICA) on a JPY10 billion financing for Tata Cleantech Capital Limited, an Indian non-banking finance company. The proceeds of the financing would be used by Tata Cleantech Capital Limited for on-lending to renewable energy, energy efficiency and e-mobility (including electric vehicles) projects in India in compliance with Green Loan Principles. The financing was arranged by Sumitomo Mitsui Banking Corporation Singapore Branch.