The firm said it concluded two transactions according to the Green Loan Principles of the Loan Market Association (LMA), as verified by independent secondary party DNV GL, as the shipping industry increasingly turns toward financing linked to measurable sustainability targets.
Mark Frese, Hapag-Lloyd's chief financial officer, said: '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.'
A US$417 million syndicated green loan has a 12-year maturity and will be used to finance three of the six containerships 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 $472 million lease financing for the remaining three newbuildings 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).
'The transactions will help us to modernise our fleet while further reducing our CO2 footprint at the same time,' Mr Frese said.
The newbuilds are being built at Daewoo Shipbuilding & Marine Engineering (DSME) in South Korea for scheduled delivery in 2023 and will be equipped with efficient MAN B&W 11G95ME-GI Mk10.5 high-pressure dual-fuel engines, enabling 15-25 per cent CO2 emissions reductions. This means that in addition to the requirements of the LMA's Green Loan Principles, the ships will also satisfy the EU Taxonomy's technical screening criteria for sea and coastal freight water transport.
The vessels will be deployed on the Europe - Far East routes as part of THE Alliance, reports Maritime Logistics Professional, Palm Beach, Florida.