- Hogan Lovells and Watson Farley & Williams advised on three green ship financing deals totaling over $1.5 billion.
- The financing supports Hapag-Lloyd’s order of 24 container ships from Chinese shipyards, adhering to Green Loan Principles.
- These investments will help modernize Hapag-Lloyd’s fleet, improving sustainability and efficiency.
Global law firms Hogan Lovells and Watson Farley & Williams played a key role in facilitating over $1.5 billion in greenship financing for Hapag-Lloyd. These transactions, structured under the Green Loan Principles, will fund the construction of 24 next-generation container ships from Chinese shipyards.
Hogan Lovells and WFW Spearhead Green Ship Financing
Hogan Lovells, in collaboration with Watson Farley & Williams (WFW), advised on three major green ship financing transactions for Hapag-Lloyd.
The funding, exceeding $1.5 billion, aligns with the Green Loan Principles set by the Loan Market Association. These deals demonstrate the growing commitment of shipping companies toward sustainability and emission reduction.
Hapag-Lloyd’s Mega Order for 24 Eco-Friendly Ships
In October 2024, Hapag-Lloyd placed an order for 24 container ships at two Chinese shipyards.
The order includes 12 vessels with a 16,800 TEU capacity from Yangzijiang Shipbuilding Group and another 12 vessels with a 9,200 TEU capacity from New Times Shipbuilding.
These ships will either expand the company’s capacity or replace aging units nearing the end of their service life.
Breakdown of the $1.5B Green Financing
The green ship financing was structured into three separate deals:
- $1.1 billion green term loan backed by Chinese ECA Sinosure, covering six 16,800 TEU and two 9,200 TEU vessels. HSBC Continental Europe led the arrangement with major banks including BNP Paribas, Citibank, Crédit Agricole CIB, and ING.
- $280 million bilateral green loan to finance three 9,200 TEU vessels, provided by KfW IPEX-Bank GmbH.
- $201 million bilateral green loan to fund two 9,200 TEU vessels, arranged by an unnamed financial institution.
Hogan Lovells’ Frankfurt Corporate & Finance team, led by Bianca Engelmann, advised Hapag-Lloyd. Meanwhile, WFW’s London Assets & Structured Finance team, led by Maren Brandes, represented the arrangers and financing banks. Their expertise in maritime finance and ECA-backed transactions was crucial in securing these deals.
Hapag-Lloyd’s Commitment to Green Shipping
“These landmark investments, among the largest in Hapag-Lloyd’s recent history, underline its commitment to continued growing whilst also modernising its fleet in terms of ship size and sustainability,” said Bianca Engelmann of Hogan Lovells. This financing allows Hapag-Lloyd to adopt more environmentally friendly technology while expanding its fleet.
Maren Brandes of WFW emphasized the industry-wide impact: “We are delighted to have advised HSBC, KfW IPEX-Bank and other lenders on these ground-breaking green financings which will drive the conversion of Hapag-Lloyd’s fleet to environmentally friendly technology and demonstrate a real commitment by the shipping industry to reduce global carbon emissions.”
Green Loan Principles and Sustainability Goals
All three financing agreements adhere to the Green Loan Principles, reinforcing Hapag-Lloyd’s commitment to sustainable shipping.
These investments align with the broader maritime industry’s push for reduced emissions and cleaner fuel alternatives.
Strengthening Hapag-Lloyd’s Competitive Edge
With this financing, Hapag-Lloyd strengthens its position as a global leader in sustainable shipping.
Adding modern, fuel-efficient vessels allows the company to remain competitive in an evolving regulatory landscape that increasingly favors eco-friendly operations.
The Future of Green Ship Financing
This deal signals a growing trend in maritime finance, where green loans are becoming a preferred method for funding fleet renewals.
As environmental regulations tighten, shipowners will continue to seek sustainable financing solutions to future-proof their operations.
Hogan Lovells & WFW Drive $1.5B Green Ship Financing
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Hogan Lovells
