PSA Marine granted sustainability-linked loan from DBS

HARBOUR and terminal towage operator PSA Marine has been granted a sustainability-linked loan from DBS, the first in Singapore's maritime industry.

The three-year, 30 million euro (S$47.8 million) equivalent loan features an interest rate adjustment linked to an ESG (environmental, social and governance) target. This requires a fleet of PSA Marine's crew transfer vessels (CTVs) to be substantially deployed to support offshore wind energy-related activities, such as the transportation and accommodation of personnel, cargoes and equipment for offshore wind farms, said DBS and PSA Marine in a joint statement on Wednesday.

PSA Marine's subsidiary, Ventus Marine Limited, currently owns and operates a fleet of 10 modern CTVs to service the renewable offshore wind market in Europe.

The group has grown its business in the renewable energy sector since 2015, as part of a larger move towards sustainable energy.

Its other business offerings which help facilitate the transition to a low-carbon economy include the provision of CTVs and service accommodation transfer vessel services to the offshore wind market in Taiwan, support vessel services to the liquified natural gas (LNG) market in Bangladesh, and harbour towage services with two dual-fuel LNG harbour tugs in Singapore.

"We are proud to play a part in supporting the offshore wind industry and will continue to partner with financial institutions and other organisations to explore new opportunities in this space," said Peter Chew, managing director of PSA Marine.

Boey Yin Chong, DBS managing director and global head of shipping, aviation, logistics and transportation, added: "A shift in mindsets by traditionally carbon-intensive industries like transportation towards more sustainable practices is a needed and progressive step in the right direction."

Since 2018, DBS has done around 100 sustainable finance deals worth over S$15 billion and has committed to financing S$20 billion in renewable, clean-energy and green projects by 2024.