Seaspan Corporation, a wholly owned subsidiary of Atlas Corp, closed its sustainability-linked loan. The SLL will be a $200 million increase to Seaspan’s portfolio financing program, the first of its kind in the containership leasing industry, according to the company.

The SLL consists of a $200 million term loan with a tenor of six years. The expanded program is comprised of a $300 million revolving credit facility and approximately $1.5 billion of term loan commitments, with staggered maturities between 2024 and 2026. Proceeds from the SLL are intended to pay down the RCF, bolstering liquidity and capacity for growth opportunities.

The SLL received a BBB- senior secured rating from Kroll Bond Rating Agency.

“Our execution of the SLL marks the first sustainability-linked financing in the containership leasing space and aligns Seaspan’s long-standing commitment to sustainability with our capital structure strategy. Further, our team has been consistently executing on quality growth and capital structure improvement through a difficult period for the global capital markets. We are proud of the partnerships we have fostered over the last 20 years – with both liner customers and financial partners – which have made this milestone possible,” Bing Chen, CEO and interim CFO of Atlas, said.

“We are excited to be in a position to drive innovation in both ship finance and sustainability-linked lending, which aligns with our corporate goals and key priorities for Seaspan,” Matthew Tinari, head of corporate development for Seaspan, said.

The SLL is fully underwritten by Société Générale and BNP Paribas as mandated lead arrangers, underwriters and bookrunners, with Société Générale acting as the sole sustainability coordinator.

Atlas is a global asset management company.

Seaspan is an independent owner and operator of containerships.