PSL is one of the world’s largest pure dry cargo ship-owning companies operating in the geared (10,000 to 69,000 dead weight tonnage) sector of the tramp freight market. PSL currently operates 36 dry bulk ships with a total capacity of 1.6 million dead weight tonnage. PSL is a member of the GP Group, a 150-year-old diversified Thai conglomerate with businesses across shipping, pharmaceuticals, construction, and mining sectors.  PSL was established in 1989 and was listed on Stock Exchange of Thailand in 1993.                                              

The proposed IFC financing will be a senior Sustainability-Linked Loan (SLL), to the Project Companies comprising: (i) an IFC A loan of up to US$60 million for IFC’s own account, (ii) up to US$25 million of an IFC B loan for the account of B loan participants and/or parallel loans from parallel lenders, and (iii) interest rate swaps. The senior loans will have a tenor of eight years, will be secured by the assets, cashflows and shares of the Project Companies and guaranteed by PSL as the parent entity.                                           

PSL corporate offices are in Thailand, while the Project Companies are incorporated in Singapore. The four cement vessels transport cement along the west coast of India and Sri Lanka. The dry bulk vessel transports various dry bulk commodities worldwide.           

          N/A                                         

This is a category B project according to IFC’s Policy on Environmental and Social Sustainability. The project vessels are existing operating ships. The key risks and impacts will therefore be limited, few in number, and largely reversible. Any adverse impact can be minimized, avoided or mitigated by adhering to generally recognized international industry performance standards, guidelines, or design criteria. Accordingly, the key E&S issues related to the project and reviewed at appraisal are: E&S management systems as applied to project vessels; vessels’ inspection and certification status; capacity to operate, maintain and decommission/dismantle/recycle project vessels in accordance with the IMO conventions, International Safety Management Code (ISM code), IFC PSs and national requirements; working conditions and OHS for employees and contractors; compliance with MARPOL; emergency, oil and chemical spill management; shipboard petroleum product and chemical storage and handling; vessel’s waste management; crew community interaction during shore leave; security; and management of any impacts on sensitive coastal and marine environment.

IFC will require that the project companies, within a timeframe to be agreed with IFC, adopt and implement an upgraded ESMS that has been outlined in the sections below.