This month, Ardmore Shipping Corporation renewed for two years its $15 million traditional working capital revolving credit facility with ABN AMRO and upgraded it by converting it into its first sustainability-linked finance facility. While pricing was not disclosed, the facility contains a pricing adjustment feature linked to Ardmore's performance on carbon emission reduction, in conformance with the IMO’s targets for GHG reductions, and other environmental and social initiatives. The other commercial terms and conditions are improved from the prior receivables' facility. The new facility will mature in July 2022 with options to extend for two more years.
The facility recognizes Ardmore's current strong performance on Environmental Social and Governance (“ESG”) initiatives including, carbon emission levels which significantly outperform the targets set out under the Poseidon Principles, and a very diverse organization with employees representing ten nationalities of which 59% are female. The pricing structure in the new facility will reward the Company for maintaining its carbon emission reduction trajectory and overall performance on ESG.