Odfjell Tests Debt Market's Interest in Marine Decarbonisation Bonds

by Ship & Bunker News Team
Friday January 8, 2021

Shipping and logistics company Odfjell is considering issuing bonds with a yield linked to its fleet decarbonisation efforts, in a test of debt investors' interest in sustainable shipping.

Odfjell is contemplating selling four-year bonds denominated in Norwegian Krone with a link to its fleet transition plans, the company said in a statement on its website Thursday.

The company is seeking to cut its carbon dioxide emissions per tonne carried per nautical mile by at least 50% from 2008's levels by 2030, and would measure its trajectory towards this goal on an annual basis and pay a higher yield on its bonds as penalty for falling short of it.

The issuance would be a test of green investors' interest in the shipping industry's decarbonisation efforts.

Parts of the industry in recent years have sought to label a range of projects as green investments -- including scrubber installations and other projects involving no shift away from fossil fuels -- that would not normally be able to earn that label for investors in other industries.