Belgian shipowner DEME has converted its entire loan portfolio of €579m ($658.3m) to sustainability-linked loans as part of its ambitious sustainability goals.
The commercial terms of loans will now be directly linked to the performance of DEME with regard to sustainability in two specific areas: work safety and low carbon fuel.
Key performance indicators (KPIs) will trigger adjustments on the interest margins applied to the loans with lenders agreeing to lower the interest rate when the company achieves its targets, while failure to do so will result in a slight increase of the interest rate.
