Hapag-Lloyd Secures Green Financing for 24 New Vessels

Germany’s Hapag-Lloyd has finalized funding arrangements for its 24-vessel newbuilding program, which was approved last year.

The Hamburg-based shipping giant outlined that the financing consists of four key components. Approximately $900 million will be covered using internal funds, while $500 million will come from bilateral mortgage loans secured from two banks. Additionally, $1.8 billion will be funded via three leasing structures, and $1.1 billion through a syndicated credit facility backed by the China Export & Credit Insurance Corporation (Sinosure).

The 24 vessels, ordered in October 2023 for delivery between 2027 and 2029, will be constructed in China at Yangzijiang Shipbuilding and New Times Shipyard. These ships will feature state-of-the-art, low-emission high-pressure LNG dual-fuel engines, designed to reduce environmental impact. They will also be biomethane-compatible and ready for ammonia fuel, aligning with the company’s sustainability goals.

The financing is structured in accordance with Hapag-Lloyd’s Green Financing Framework, which adheres to the standards set by the Green Loan Principles of the Loan Market Association (LMA).

The green financing arrangement covers approximately 80% of the total investment, with loan maturities ranging between 10 and 18 years, according to Hapag-Lloyd.

Upon completion, the 24 new ships will increase the company’s fleet capacity by 312,000 TEU, reinforcing its position as the world’s fifth-largest liner operator.

“We are continuously modernizing our fleet in order to deliver a high quality of service and to achieve our ambitious decarbonization goals,” said Mark Frese, Chief of Finance at Hapag-Lloyd. He further noted, “The successful conclusion of several attractive financial transactions confirms that green financing components are becoming increasingly important.”