Low Emission Methanol Shipping Company S.C.A. SICAV-RAIF ("LEMSCO" or the "Fund")

WOLLERAU, Switzerland and GOTHENBURG, Sweden, Oct. 24, 2023 /PRNewswire/ -- Wollerau, Switzerland and Gothenburg, Sweden -  ProMarine AG, the Investment Advisor leading the financing of the maritime energy transition, is pleased to announce the launch of an industry-first sustainable shipping fund with an initial portfolio of four methanol-fuelled MR tankers led by Proman, one of the world's largest methanol producers, and Stena Bulk AB, an internationally recognised and leading European shipping company.

LEMSCO Vessels

Low Emission Methanol Shipping Company S.C.A. SICAV-RAIF ("LEMSCO") is the result of a collaboration between Proman and Stena Bulk. The Fund is backed by equity investors and benefits from a green loan from ABN AMRO. LEMSCO's seed assets consist of four methanol fuelled vessels acquired from Proman and Stena Bulk:

-  Stena Pro Patria

-  Stena Pro Marine

-  Stena Promise

-  Stena Prosperous

Fully re-engineered for low resistance and efficient propulsion, these IMOIIMeMAX vessels are amongst the most energy efficient and sustainable MR tankers in the world, with methanol power providing a pathway to eliminating nearly all greenhouse gases.

LEMSCO will also benefit from a dedicated methanol supply contract from Proman, ensuring that the fleet's operations are not only cost-effective but also powered by a technology-proven and globally available low-emission alternative fuel.

Welcoming the announcement, David Cassidy, Chairman of the ProMarine Board and Chief Executive of Proman, said: "We are delighted to be launching LEMSCO, which is pioneering in its efforts to address the air pollution and wider environmental concerns surrounding the maritime industry. We all recognise that the transition to sustainable shipping requires significant capital investment. By providing an alternative financing mechanism, LEMSCO  plays a crucial role in bridging this gap and facilitating the industry's transition to lower emission fuels."

He added, "We are grateful to our partners and to ABN AMRO for their important early support. LEMSCO demonstrates the market's readiness to offer practical financial incentives through reduced cost funding for ships fuelled by low-emission methanol, and can be the catalyst for further investments into sustainable shipping."

Erik Hnell, Board Member of ProMarine and President & CEO at Stena Bulk AB, shared his enthusiasm for this ground-breaking initiative, stating: "The launch of LEMSCO is a pivotal moment, showcasing the maritime industry's commitment to a sustainable future. Through strategic collaboration and innovative green financing, we are shaping a new era of maritime operations, prioritising low-emission methanol as a viable alternative fuel. LEMSCO represents a step towards meaningful change, enabling investors to support a greener, more sustainable shipping industry. Together, we are charting a course towards cleaner oceans and a more responsible shipping industry".

ABN AMRO provided debt financing to the Fund which was independently assessed against the LMA Green Loan Principles and has been successfully designated as a Green Loan by DNV.

Remco Jongkind, Managing Director ABN AMRO said: "ABN AMRO is incredibly proud to support LEMSCO in this landmark transaction. This transaction is the result of executing on our climate strategy to decarbonise the shipping sector whereby LEMSCO is setting the example through the setup of a low emission fund. ABN AMRO is keen to continue its support for the growth of the low emission portfolio backed by two strong industry-leading sponsors."

As the maritime sector makes strides towards a sustainable future, LEMSCO is in a favourable position to provide the requisite financing for the green maritime transition. LEMSCO will invest in shipping and associated infrastructure with the aim of reducing emissions from the global maritime sector - which are currently responsible for c. 3% of global greenhouse gas emissions - providing investors with an opportunity to invest directly in the energy transition of the shipping industry.

The second vessel in the LEMSCO fleet, Stena Pro Marine, will have her Naming Ceremony in the Port of New Orleans on the 24 October 2023, showcasing the greenhouse gas reduction benefits of methanol fuel at one of the busiest cruise and cargo ports in the United States.

Notes to Editors

About ProMarine

ProMarine is the Investment Advisor and General Partner of LEMSCO, created to lead the financing of the maritime energy transition. ProMarine was established by Proman and Stena Bulk to drive forward the sustainability of the maritime industry in order to secure the prosperity and health of the environment for future generations.

For further information please contact: info@promarine.pro

ABN AMRO

ABN AMRO acted as Mandated Lead Arranger, Coordinator and Documentation Agent in the Green Loan financing of four methanol powered vessels for the Low Emission Shipping Company ("LEMSCO")."