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Hapag-Lloyd Secures "Green" Financing for Six Megamax Boxships

Hapag
File image courtesy Hapag-Lloyd

Published Mar 3, 2021 3:14 PM by The Maritime Executive

Hapag-Lloyd is joining a growing trend in newbuild financing by obtaining "green loans" to build six new mega-boxships. The vessels will be LNG fueled, qualifying them for certified "green" financing under the Green Loan Principles of the Loan Market Association (LMA). DNV provided verification that the transactions fulfil the requirements of the program.

In February, Hapag-Lloyd concluded a syndicated loan of $417 million and lease financing of $472 million, both linked to the financing of six ultra-large 23,500 TEU container ships which were ordered in December. The billion-dollar investment will give the company lower slot costs and better competitiveness on the Far East-Europe trade lane, Hapag-Lloyd said. The vessels will also be highly efficient. 

“Based on their hydrodynamic optimization, very efficient main and auxiliary engines and use of LNG as their main fuel, these vessels can meet all the criteria required,” said Jan-Henrik Hübner, Global Head of Shipping Advisory Practice at DNV Maritime. “Furthermore, with the ability to run on bio- and synthetic-LNG once these fuels become more widely available, they offer an example of how vessels can reduce carbon intensity now, while being ready to move to a lower or zero carbon future.”

“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 modernize our fleet while further reducing our CO2 footprint at the same time."

As a result of their high-pressure injection LNG dual-fuel engines, the six newbuildings will have CO2 emissions roughly 15 to 25 percent lower than a comparable conventionally-fueled vessel, along with a guaranteed low rate of methane slip. The CO2 emissions reductions mean that the ships will also satisfy the EU Taxonomy’s technical screening criteria for sea and coastal freight water transport.