New LEMSCO fund brings together brings together two of the world’s biggest companies, Stena Bulk for the completely redesigned ships and Proman for the methanol fuel
ProMarine AG, the investment advisor leading the financing of the maritime energy transition, is pleased to announce the launch of an industry-first sustainable shipping fund with an initial portfolio of four methanol-fueled MR tankers from Proman, one of the world’s largest methanol producers and Stena Bulk AB, an internationally recognized and leading European shipping company.
The Low-emission methanol shipping company SCA SICAV-RAIF – known as LEMSCO – is the result of a collaboration between Proman and Stena Bulk. The fund is backed by equity investors and receives a green loan from ABN AMRO. LEMSCO’s seed assets consist of four methanol-powered vessels , which were purchased by Proman and Stena Bulk:
The four ships are: the Stena Pro Patria, Stena Pro Marine, Stena Promise and the Stena Prosperous. These IMOIIMeMAX ships have been completely redesigned to ensure low drag and efficient propulsion. They are among the most energy efficient and sustainable MR tankers in the world, with methanol propulsion providing a path to eliminating almost all greenhouse gases.
LEMSCO will also benefit from a dedicated methanol supply agreement with Proman, ensuring that the operation of the fleet is not only cost-effective, but also powered by a technologically proven and globally available low-emissions alternative fuel.
Welcoming the announcement , David Cassidy, Chairman of ProMarine Board and Managing Director of Proman, said in a statement: “We are pleased to launch LEMSCO, which is leading the way in tackling air pollution and wider environmental issues in the maritime industry. We all know that the transition to sustainable shipping requires significant investments. By providing an alternative financing mechanism, LEMSCO plays a critical role in bridging this gap and facilitating the industry’s transition to lower-emission fuels.”
He added: “We are grateful to our partners and ABN AMRO for their important early support. LEMSCO shows that the market is ready to offer practical financial incentives through low-cost financing of ships powered by low-emission methanol and can serve as a catalyst for further investment in sustainable shipping.”
Erik Hånell, Board Member of ProMarine and President & CEO of Stena Bulk AB, said: “The launch of LEMSCO is a pivotal moment that demonstrates the maritime industry’s commitment to a sustainable future. Through strategic collaboration and innovative green financing, we are shaping a new era of maritime transport that prioritizes low-emission methanol as an alternative fuel. LEMSCO represents a step towards meaningful change, enabling investors to support a greener, more sustainable shipping industry. Together we are heading towards cleaner oceans and a more responsible shipping industry.”
ABN AMRO provided debt financing to the fund, which was independently audited against the LMA Green Loan Principles and successfully classified as a green loan by DNV.
Remco Jongkind, Managing Director of ABN AMRO said: “ABN AMRO is incredibly proud to support LEMSCO in this groundbreaking transaction. This transaction is the result of the implementation of our climate strategy to decarbonize the shipping sector, where LEMSCO is leading by example through the establishment of a low emissions fund. ABN AMRO is keen to further support the growth of the low carbon portfolio, supported by two strong, industry-leading sponsors.”
A press statement making the announcement said: ” As the maritime sector makes progress towards a sustainable future, LEMSCO is well positioned to provide the necessary financing to transition to a green maritime economy. LEMSCO will invest in shipping and related infrastructure to reduce emissions from global shipping, which currently accounts for approximately 3% of global greenhouse gas emissions, and offers investors the opportunity to invest directly in the shipping industry’s energy transition.”
The second ship in the LEMSCO fleet, Stena Pro Marine , was officially christened at the Port of New Orleans on October 24, 2023, demonstrating the greenhouse gas reduction benefits of methanol fuel at one of the busiest cruise and cargo ports in the United States.
About ProMarine
ProMarine is the investment advisor and general partner of LEMSCO, founded to lead the financing of the maritime energy transition. ProMarine was founded by Proman and Stena Bulk to advance the sustainability of the maritime industry, ensuring the prosperity and health of the environment for future generations.
About ABN AMRO
ABN AMRO acted as mandated LEAD arranger, coordinator and documentation agent in the financing of four methanol-fueled vessels for the Low Emission Shipping Company (“LEMSCO”) with a green loan.
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