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 34 dry bulk ships and four cement carriers with a total capacity of 1.7 million dead weight tonnage. PSL is a member of the GP Group, a 155-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. PSL is an existing IFC client through project #45146 (https://disclosures.ifc.org/project-detail/SII/45146/psl-ultratech).

The proposed IFC financing involves senior loans with an overall tenor of up to 10 years, to the Project Companies comprising: (i) up to US$35 million from IFC’s own account, (ii) up to US$35 million from IFC acting in its capacity as implementing entity for the Managed Co-Lending Portfolio Program (MCPP), and (iii) up to US$60 million syndicated loans consisting of IFC B loans for the account of B loan participants and/or parallel loans from parallel lenders. The loans 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 will be incorporated in Singapore. The dry bulk vessels are expected to transport various dry bulk commodities worldwide.

 This is a category B project according to IFC’s Policy on Environmental and Social Sustainability. 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: ESMS that will be applied to Project Vessels; procedures for due diligence of Project Vessels’ inspection and certification status; capacity to operate, maintain and decommission/dismantle/recycle Project Vessels in accordance with the International Maritime Organization (IMO) conventions, International Safety Management Code (ISM code), IFC PSs and national requirements; working conditions and OHS for employees and contractors; compliance with the International Convention for the Prevention of Pollution from Ships (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.