X-Press Feeders (XPF) has signed a sustainability-linked credit deal with investors, including the Asian Infrastructure Investment Bank (AIIB), to assist its efforts to cut carbon emissions.
XPF is reportedly utilising earnings from the $165 million loan to finance the acquisition of three 7,000 TEU newbuild containerships, boosting the company’s fleet renewal programme and replacing ageing vessels with newer, more fuel-efficient ones.
Sustainability-linked finance incentivises the attainment of environmental, social, and governance goals through price incentives.
This financing is XPF’s first sustainability-related loan, with price incentives linked to our promise to lower fleet AER by 40 per cent between 2019 and 2027.
The aim, which will be reassessed in 2027, corresponds with XPF’s global emission reduction targets of halving absolute emissions by 2040 and reaching net-zero emissions by 2050, therefore boosting the maritime industry’s efforts to conform with the Paris Agreement.