Lending linked to Environmental, Social and Governance (ESG) factors is gaining ground in the Greek shipping and banking community.
Certain green or social goals are set for the shipping companies, which – if achieved – ensure more favorable terms during financing.
Building modern ships and reducing fleet emissions, but also achieving greater diversity among personnel are included in these factors.
“There are increased indications of sustainability-related financing from Greek banks,” Theodoros (Ted) Petropoulos, head of Petrofin Research, which has been conducting research on Greek shipping and the financing of its companies for several years, told “Naftemporiki”.
“All four major banks have put relevant mechanisms in place and have proceeded with some loans. However, these financings do not yet have a significant share in their portfolios, but it is only a matter of time before that happens,” he added.
“The smaller Greek and Cypriot banks do not currently offer such loans, but it is a fact that they are all now looking to build a green profile in their portfolios, showing a will to progress,” Petropoulos explained.
“Green, sustainable or socially connected – including those related to diversity – financings are becoming more and more popular in the international shipping industry,” Yianni Cheilas, head of Greece at the Norton Rose Fulbright (NRF) law firm, noted.
NRF advised the banks on the loan to GasLog. “My own experience shows that the shipping industry seeks to do everything it can to make progress in a sustainable direction as quickly as possible,” he added.
