Hapag-Lloyd inks $889 million green financing for LNG-powered sextet

Germany’s Hapag-Lloyd said it has entered into its first green financing deals worth $889 million to fund its recently announced order for six ultra-large LNG-powered vessels.

The shipping firm said Monday it concluded two debut transactions according to the green loan principles of the London-based Loan Market Association. In addition, this has also been verified by classification society DNV GL as a secondary party opinion.

The package includes a syndicated loan of $417 million and lease financing of $472 million.

Furthermore, the syndicated green loan has a 12-year maturity and will go for the financing of three newbuilds. The credit facility is being backed by the Korea Trade Insurance Corporation (K-SURE), and the syndicate consists of 11 banks.

KfW IPEX-Bank and BNP Paribas were in charge of structuring and coordinating the transaction, Hapag-Lloyd said.

Moreover, the lease financing for the remaining three newbuildings has a maturity of 17 years plus construction-phase financing. The Industrial and Commercial Bank of China Leasing (ICBC Leasing) structured this financing.

“Our first green financings are a major milestone for us, as we are breaking new ground in the container shipping segment by financing newbuilding projects geared towards sustainability,” said Mark Frese, chief financial officer of Hapag-Lloyd.

“The transactions will help us to modernise our fleet while further reducing our CO2 footprint at the same time,” he said.

The order for the 23,500+ TEU vessels at South Korea’s Daewoo Shipbuilding & Marine Engineering has a price tag of about $1 billion.

Volkswagen’s MAN Energy Solutions will provide six MAN B&W ME-GI main engines as part of a recently revealed deal.

Following delivery in 2023, Hapag-Lloyd will deploy the ships on the Europe – Far East routes as part of The Alliance, a shipping consortium consisting of the German liner, ONE, Yang Ming, and HMM.

- Advertisements -

Most Popular

Sarah Bairstow named as CEO of Mexico Pacific

Mexico Pacific, the developer of the planned 15 mtpa Saguaro Energia LNG export project, has appointed Sarah Bairstow as...

India’s Chhara LNG terminal gets first cargo

India’s Hindustan Petroleum, a unit of state-owned ONGC, has received the first cargo of liquefied natural gas at its...

CNOOC to supply LNG cargo to First Gen’s Batangas FSRU terminal

Power producer First Gen has awarded a contract to a unit of China's state-owned energy giant CNOOC to supply...

More News Like This

Hapag-Lloyd’s containership wraps up largest bio-LNG bunkering op in Rotterdam

Germany’s Hapag-Lloyd has joined forces with Dutch LNG supplier Titan and trader STX to complete what they say is...

Hapag-Lloyd working on synthetic methane project to fuel its LNG-powered vessels

Germany’s Hapag-Lloyd is working on a synthetic methane project as it looks to further reduce emissions from its fleet...

Shell starts fueling Hapag-Lloyd’s LNG-powered giants in Rotterdam

Shell has started delivering liquefied natural gas to Hapag-Lloyd’s giant LNG-powered containerships in the Dutch port of Rotterdam under...

Hapag-Lloyd welcomes second LNG-powered giant in its fleet

Germany’s Hapag-Lloyd has taken delivery of the second of the twelve ultra-large LNG-powered containerships from South Korea’s Hanwha Ocean. Hanwha...