A.P. Moller–Maersk has launched its Green Finance Framework under which it issues a variety of sustainable financing instruments, such as bonds, loans, and project finance. The first € 500 million green bond will be used to build Maersk’s first feeder vessel and eight container ships capable of running on methanol.
By establishing the new Green Finance Framework, Maersk intends to align its funding strategy with its goal to become carbon neutral by 2050.
‘Issuing Green Financing Instruments is a further step to integrating sustainability into our financing operations as it is an effective tool for channelling investments to projects with positive environmental impact and thereby contributing to the achievement of the UN Sustainable Development Goals (SDGs) and the Paris Agreement,’ says Patrick Jany, CFO at Maersk. ‘With this green bond, we aim at diversifying our investor base by reaching out to new investors and increasing the transparency of our ESG (Environment, Social, Governance, Ed.) ambitions and performance even further towards our stakeholders.’
First green bond
Its inaugural ten-year, € 500 million green bond was met with strong demand with a final order book at € € 3.7 billion. The transaction priced at coupon of 0.75%, the lowest coupon ever for Maersk. The feeder vessel and eight container ships that will be funded by the bond will be able to operate on carbon neutral methanol by 2023 and 2024, respectively.