Hapag-Lloyd has acquired $3.4bn in ‘green financing’ for its latest newbuilding programme from external sources, including China.
Alongside $900m from the carrier, the funding includes $1.8bn from three leasing structures, $1.1bn in a syndicated credit facility with the China Export & Credit Insurance Corp (Sinosure), and $500m from two bilateral mortgage loans.
The green financing will be used to support October’s order for 12 16,800teu and 12 9,200teu LNG dual-fuel vessels – 312,000 teu of additional capacity.
The vessels, from Yangzijiang Shipbuilding and New Times Shipbuilding respectively, are said to be ‘ammonia-ready’, and described as “one of the largest [investments] in the recent history of Hapag-Lloyd”.
The green financing is in line with the requirements of the Loan Market Association, compliance of the newbuild designs with the EU taxonomy technical screening criteria, and the high efficiency of the vessels themselves, which have been certified externally by DNV.
The deal follows other green financing agreements by Hapag-Lloyd in 2021 for six 23,500 teu containerships ordered in December 2020 and similarly verified by DNV. Those Hamburg Express-class begemoths, powered by LNG dual-fuel, were delivered between 2023-24.
“This is the seventh ‘second party opinion’ or related assessment in course of sustainable finance transactions (green and sustainability-linked) DNV did for HLAG,” DNV Maritime spokesperson Henrik Smehaug explained. “The EU taxonomy, which was the key angle for Hapag-Lloyd’s recent green loan, is a design-related set of criteria. There was evidence that they are met.”
“We are continuously modernising our fleet in order to deliver a high quality of service and to achieve our ambitious decarbonisation goals,” said Mark Frese, CFO of Hapag-Lloyd. “The successful conclusion of several attractive financial transactions confirms that green financing components are becoming increasingly important.
“In addition, we are pleased to be able to finance newbuild projects in China for the first time with the Sinosure transaction,” he added.
Due for delivery between 2027 and 2029, the vessels will be able to operate on bio-methane, should Hapag-Lloyd wish to do so. While the industry is not always agreed on what exactly is meant by ‘ammonia-ready’, Hapag-Lloyd has demonstrated its willingness to retrofit vessels for new fuels.
Last April , the line committed to having five 10,100teu vessels retrofitted for methanol propulsion, and concluded a long-term offtake agreement with Goldwind for some 250,000 tonnes of green methanol a year.
