Watson Farley & Williams (WFW) has advised a consortium of international lenders on an Export Credit Agency (ECA)-backed JOLCO financing deal for Ocean Network Express Pte. Ltd. (ONE).
The financing will support the construction of four advanced container vessels, marking the first vessel-related JOLCO financing for Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).
Consortium and Financing Structure
The consortium included BNP Paribas, HSBC, and Citibank as mandated lead arrangers, with JBIC and NEXI providing ECA backing. Financial Partners Group (FPG) arranged the equity portion of the transaction. This collaboration highlights a significant milestone for Japanese ECAs entering vessel-related JOLCO financing.
Innovative Vessel Design and Future Readiness
The four 13,700 TEU container vessels, under construction at Nihon Shipyard and Imabari Shipbuilding, are designed with next-generation fuel capabilities. They are ammonia- and methanol-ready, and engineered to accommodate future carbon capture systems. These features align with ONE’s sustainability goals and commitment to introducing greener ships into its fleet.
ONE’s Position in Global Shipping
Headquartered in Singapore, ONE is jointly owned by Nippon Yusen Kabushiki Kaisha, Mitsui O.S.K. Lines, and Kawasaki Kisen Kaisha. As one of the world’s largest container shipping companies, it operates over 260 vessels with a fleet capacity of around two million TEU, reinforcing its role in global trade and logistics.
WFW’s Role and Legal Advisory
WFW’s Tokyo Assets and Structured Finance team, led by Partners Simon Collins and Shusuke Fukunaga, played a central role in advising the ECAs and lenders. The transaction also received support from the firm’s New York and Singapore offices, reflecting WFW’s cross-border legal expertise.
This landmark deal not only expands ONE’s fleet with environmentally advanced vessels but also establishes a new precedent in ECA-backed JOLCO financing. It strengthens Japan’s shipbuilding industry, supports maritime decarbonization, and showcases WFW’s expertise in advising on innovative international shipping finance transactions.
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Source: WATSON FARLEY & WILLIAMS
