KfW IPEX-Bank and BNP Paribas partner to support Hapag-Lloyd in achieving a Green Loan financing for three of six ultra large container vessels, which were ordered in December 2020, says a press release published on their website.
About the loan agreement
KfW IPEX-Bank and BNP Paribas have signed a loan agreement with Hapag-Lloyd AG for USD 417 million to finance three 23,500 TEU container vessels. Under a syndication arrangement, the two banks included nine other international banks in the financing.
The transaction was structured and coordinated by KfW IPEX-Bank and BNP Paribas acting jointly as Global Coordinators and as Green Finance Coordinators.
The 12-year financing fulfils the Loan Market Association’s Green Loan Principles as confirmed in an expert opinion by DNV GL and is secured via cover from Korea Trade Insurance Corporation (K-SURE).
Dual-fuel engines
Following their construction in South Korea, delivery of the vessels is scheduled for 2023. Given their extremely efficient high-pressure dual-fuel engines the vessels able to run on liquefied natural gas (LNG), will generate approx. 15 to 25 per cent CO2 savings compared to traditional engines.
Hapag’s Green shipping transition
“With this financing, we are helping our long-standing customer Hapag-Lloyd with its transition to ‘green’ shipping,” Andreas Ufer, member of the Management Board of KfW IPEX-Bank, said.
“Scaling up the net zero transition requires a mobilisation of sustainable finance tools across the whole economy. This latest Green Loan with Hapag-Lloyd demonstrates a progressive approach to decarbonising the shipping sector, which is a critical industry to support in reducing global emissions,” Lutz Diederichs, CEO BNP Paribas Germany, said.
Other members involved
With MAN Energy Solutions – which is supplying the engines – and DNV GL, two members of the German Maritime Export Initiative (GeMaX) are also on board. With their fuel-efficient dual-fuel engines from MAN, the newbuildings will not only cut CO2 emissions by around a quarter compared with conventional drives but also reduce sulphur dioxide and particulate matter by more than 90 per cent thanks to LNG.
Enabling Hapag-Lloyd to modernise fleet
As informed, the financing runs for 12 years from the date of delivery and the credit facility is secured by Korea Trade Insurance Corporation (K-SURE).
The financing provided by a consortium led by KfW IPEX-Bank and BNP Paribas is enabling Hapag-Lloyd to modernise its fleet of around 240 operated ships. The shipping company had already ordered vessels of the same size at the end of 2020.
