Law firm Stephenson Harwood (Singapore) Alliance has advised long-standing client, Hafnia Limited, in relation to a US$374 million sustainability-linked term loan and revolving credit facility. The facility is provided by a syndicate of ten banks, led by Standard Chartered Bank.

Oslo-listed Hafnia, which forms part of the BW Group, is a global oil product tanker owner and operator, and controls a fleet of approximately 180 vessels.

The new loan facility represents Hafnia's first syndicated sustainability-linked loan, and is one of the largest of its kind in the shipping sector. It contains a bespoke margin adjustment mechanism, which is based on emission related key performance indicators (KPI). These KPIs factor in the Poseidon Principles and the International Maritime Organisation's decarbonisation targets.

Hafnia has also appointed Sustainalytics, an environmental, social and corporate governance performance data and research provider, to confirm that the facility’s structure will support Hafnia’s overall sustainability strategy.

The Stephenson Harwood team was led by partner Gregg Johnston, who was supported by associate Thomas Böhringer.