SINGAPORE SHIPPING FORUM 2021: SHIPPING - POST-PANDEMIC - EVOLUTIONS AND THE TRENDS OF SUSTAINABLE FINANCE IN SHIPPING

SINGAPORE SHIPPING FORUM 2021: SHIPPING - POST-PANDEMIC - EVOLUTIONS AND THE TRENDS OF SUSTAINABLE FINANCE IN SHIPPING

Singapore Shipping Forum 2021

Interest in Sustainable Finance products will continue to accelerate in shipping, according to Ms. Marisa Dupuis, Vice President, Shipping & Offshore, Transportation Sector, Investment Banking APAC, BNP Paribas. Although sustainable financing currently occupies a relatively low proportion of total shipping finance, Ms. Dupuis opined that this proportion is set to rise as the industry comes under a greater spotlight for environmental issues. Regulators and central banks alike are increasingly focused on sustainability, and the industry needs to respond. In particular, Sustainability-Linked Loans (SLLs), one type of Sustainable Finance products, are gaining popularity. Ms. Dupuis noted that in the first quarter of 2021, 79% of all sustainable loans are SLLs. One reason for the attractiveness of SLLs is in the lack of restriction on the usage of the proceeds. Other types of sustainable finance restrict the usage of proceeds only to eligible projects that provide environmental benefits, but the pool of these projects that qualify for debt financing are, at present, limited.

 


The Singapore Shipping Forum 2021 is hosted annually by Moore Stephens, Singapore, is organized in conjunction with co-sponsor BNP Paribas, Singapore, and is supported by both the Institute of Chartered Shipbrokers and the Singapore Shipping Association. The event is part of the Singapore Maritime Week 2021, an event organised by the Maritime and Port Authority of Singapore (MPA), and was attended by more than 300 delegates.