Background and challenge

Precious Shipping Public Company Limited (PSL) was looking to raise capital through a Sustainability Linked Bond (SLB), backed by a guarantee from the Credit Guarantee and Investment Facility (CGIF). This issuance would be the first of its kind for an Asian Shipping Company. 

To proceed, PSL required an independent Second Party Opinion (SPO) to validate the credibility of its Sustainability-Linked Finance Framework against the International Capital Market Association (ICMA) Sustainability-Linked Bond Principles (SLBP), Sustainability-Linked Loan Principles (SLLP) and ASEAN Sustainability-Linked Bond Standards. The framework needed to demonstrate material KPIs, ambitious Sustainability Performance Targets (SPTs) and robust monitoring and verification mechanisms, with sufficient transparency and credibility to meet investor and CGIF expectations.

Solution

Lloyd’s Register (LR) Advisory) was engaged to provide an independent SPO. Drawing on its expertise in sustainable finance frameworks and recognised credibility with investors and financial institutions, the assessment was designed to validate PSL’s framework against global best practices and give both investors and CGIF the confidence they needed to issue the bond.

The report was aligned with the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) marine transportation standards. The focus throughout was to make ESG implementable and scalable from day one.

Approach taken

LR Advisory drew on its globally aligned assessment methodology and deep understanding of maritime decarbonisation pathways to conduct a detailed review of the framework, assessing KPIs for materiality and relevance to operations, and evaluating SPTs against science-based trajectories. Internal monitoring and reporting processes were reviewed to assess their adequacy, and PSL’s broader decarbonisation strategy was evaluated throughout.

Key client benefits

  •  Independent validation of the framework, giving investors the confidence they needed
  • Confirmed alignment with the relevant standards
  • Clear linkage established between sustainability targets and core business operations
  • Strengthened monitoring and verification mechanisms
  • PSL positioned as a pioneer in sustainable shipping finance in Asia.

Project outcome

LR Advisory issued an independent SPO report, enabling PSL to successfully bring Asia’s first SLB to market, achieving an AAA credit rating rating from Thai Rating and Information Services (TRIS) Rating.

Conclusion

LR Advisory’s SPO gave PSL the credibility it needed to bring a landmark transaction to market. The engagement demonstrated that a robust, standards-aligned sustainability finance framework can be developed and validated for shipping, supporting both investor confidence and measurable progress on decarbonisation.