Hapag-Lloyd concludes green financing of its 24 new container ships

Hapag-Lloyd is leveraging sustainable financing for its fleet expansion 2024. The incoming vessels will boast a total capacity of 312,000 TEU, requiring a substantial investment outlay of around four billion dollars

The financing is structured into four discrete elements Approximately nine hundred million dollars of the purchase sum will be leveraged through internal financial reserves. Five hundred million dollars will be made accessible from two financial institutions through joint mortgage arrangements. Another part, in the amount of USD 1.8 billion, will be financed via three leasing structures, and USD 1.1 billion will be financed via a syndicated credit facility backed by the China Export & Credit Insurance Corporation (Sinosure). The investment's funding allocation accounts for approximately 80% of the entire project cost, with repayment periods spanning a decade or nearly two decades.

The financing will be executed under Hapag-Lloyd's Green Financing Framework, aligning with the Green Loan Principles established by the Loan Market Association. The veracity of this claim has been vouched for by a disinterested third-party expert assessment from the globally recognized classification society DNV, alongside the ships' impressive energy efficiency and adherence to the EU's regulatory framework.

"We are persistently updating and renewing our fleet to uphold the highest standards of customer service and reach our ambitious targets for reducing carbon emissions," said Mark Frese, Chief Financial Officer and Chief Procurement Officer of Hapag-Lloyd AG. "A spate of savvy financial deals has reinforced the notion that green financing components are gaining traction. Notably, we are proud to be spearheading newbuild projects in China with our maiden Sinosure venture."

Hapag-Lloyd is fully committed to the 1.5-degree target of the Paris Agreement. By the year 2030, we aim to lower our company's overall emissions by approximately a third relative to 2022 – marking a crucial stride towards a carbon-neutral fleet. 2045. Twenty-four vessels will be constructed in China, outfitted with cutting-edge, eco-friendly engines that harness the efficiency of liquefied fuels. Moreover, these vessels are equipped to run on biomethane, which slashes CO2 emissions to a tiny fraction, about 95% less than traditional propulsion systems. The forthcoming ships will also be designed to handle ammonia as a fuel. Delivery will materialize sometime after 2027 by lunar calendar. 2029.