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Star Bulk secures $310 million financing for 50 scrubber retrofits

10 Oct 2018

Athens-based dry bulk shipping company Star Bulk Tuesday entered into a USD $310 million loan agreement which includes a $70 million tranche (the Green Loan Tranche) for exclusively financing the procurement and retrofitting of scrubbers for up to approximate 50 vessels in its fleet.  

The Green Loan Tranche has been certified by DNV GL Business Assurance Services Limited (DNV GL) to be aligned with the Green Loan Principles.

“The completion of this financing is an important milestone for Star Bulk and its lending partners, who are pioneering sustainable Green Loans for dry bulk shipping investments, which aim to promote maritime emission reductions and compliance with the 2020 IMO regulations,” it says.

Star Bulk expects average the cost of each scrubber, including installation, to be below USD $2.0 million per vessel and says it has already secured debt financing to cover up approximately 70% of such cost and expects the remaining amount to be covered from operating cash flow and cash on hand.

It has also secured contracts with shipyards for scrubber installations; in approximately 35% of the installations, riding teams have been deployed to carry out retrofitting works onboard the vessels while at sea to reduce off hire time by 50% to 60%.

A month ago, Star Bulk successfully completed its first scrubber installation at sea.

Star Bulk in September announced a decision to equip its entire fleet with scrubbers before the January 1, 2020 implementation date of the new IMO sulphur emission cap regulation.

Related: Greece’s Star Bulk Carriers Corp. to equip entire fleet with scrubbers

Published: 10 October, 2018
 

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