Hapag-Lloyd secures “green finance” for LNG


German shipping company Hapag-Lloyd has joined the shift to green financing, securing funding for six liquefied natural gas (LNG)-powered container ships, 23,500 TEUs he ordered in December 2020.

The company said it has completed two transactions in accordance with the Loan Market Association (LMA) green lending principles, verified by independent secondary party DNV GL, as the shipping industry increasingly turns to financing linked to measurable sustainability goals.

“Our first green financing is an important step for us, as we innovate in the container shipping segment by financing new construction projects focused on sustainability,” said Marc Frese, c from Hapag-Lloydchief financial officer.

A syndicated green loan of $ 417 million has a 12-year maturity and will be used to finance three of the six container ships on order. The credit facility is 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.

The $ 472 million lease financing for the remaining three new buildings has a term of 17 years plus construction phase funding, and has been structured by the Industrial and Commercial Bank of China (ICBC Leasing).

“The transactions will help us modernize our fleet while further reducing our carbon footprint. ” Free noted.

The new buildings, which are under construction at Daewoo Shipbuilding & Marine Engineering (DSME) in South Korea for delivery scheduled for 2023, will be fitted with effective MAN B&W 11G95ME-GI Mk10.5 high pressure dual fuel engines, allowing CO2 emissions reductions of 15 to 25%. This means that in addition to the requirements of the LMA Green Lending Principles, vessels will also meet the technical selection criteria of the EU taxonomy for maritime and coastal sea freight transport.

Once operational, the ships will be deployed on the Europe – Far East routes as part of THE Alliance.


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