Hapag-Lloyd Finalizes Green Financings for Six Large Container Ships

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Hapag-Lloyd Finalizes Green Financings for Six Large Container Ships

Hapag-Lloyd is breaking new ground in financing by concluding two debut transactions according to the Green Loan Principles of the Loan Market Association (LMA). This has also been verified by an independent expert in the form of a secondary party opinion of the DNV GL. Both transactions are associated with the financing of six ultra-large 23,500 TEU container ships, which were ordered in December 2020.

The syndicated green loan in the amount of USD 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 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.

The lease financing for the remaining three newbuildings is in the amount of USD 472 million, has a maturity of 17 years plus construction-phase financing, and has been structured by the Industrial and Commercial Bank of China Leasing (ICBC Leasing).

“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. The transactions will help us to modernize our fleet while further reducing our CO2 footprint at the same time,” said Mark Frese, Chief Financial Officer of Hapag-Lloyd.

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Danny Gill
Danny is currently a Digital Marketing and Content Creation Manager for Airfreight Logistics and Logistics Manager (LM) and is quite the foodie. He’s always on the hunt for new and exciting dishes to sample, and is never one to back down from a spicy challenge. His travels have taken him around the world, and he’s been able to experience many different cultures (and food).