GLOBAL – Hapag-Lloyd, a leading global shipping line, has finalized a USD 4 billion green financing deal to support the construction of 24 large container ships, ordered in October 2024.
These vessels, with a total capacity of 312,000 TEU, are part of the company’s ongoing efforts to modernize its fleet and enhance environmental sustainability.
According to an official statement, the financing comprises multiple components. “Around USD 900 million of the purchase price will be financed using the company’s own funds. A total of USD 500 million will be made available from two banks in the form of bilateral mortgage loans,” the statement detailed.
It further revealed that 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).
Hapag-Lloyd confirmed that 80 percent of the total investment volume will be financed through these arrangements, with repayment periods ranging from 10 to 18 years.
The company will execute the financing under its green financing framework, which aligns with the Green Loan Principles of the Loan Market Association (LMA).
Independent verification by international classification society DNV has confirmed the efficiency of the ships and their compliance with the European Union’s environmental regulations.
Mark Frese, Chief Financial and Chief Procurement Officer at Hapag-Lloyd, outlined the company’s commitment to sustainability. “We are continuously modernizing our fleet in order to deliver a high quality of service and to achieve our ambitious decarbonization goals.”
According to Frese, the successful conclusion of several attractive financial transactions confirms that green financing components are becoming increasingly important.
“In addition, we are pleased to be able to finance newbuild projects in China for the first time with the Sinosure transaction.”
The 24 vessels will be built in China and fitted with advanced, low-emission, fuel-efficient high-pressure liquefied gas dual-fuel engines.
The ships will also be capable of operating on biomethane, which could reduce CO2e emissions by up to 95 percent compared to traditional propulsion methods. Deliveries are scheduled between 2027 and 2029.
Strategic partnerships and industry shifts
This financing agreement comes amid major industry shifts, including Hapag-Lloyd’s new collaboration with Maersk under the Gemini Cooperation.
The partnership officially launched on February 1 and involves approximately 340 vessels, transitioning to a revised network over the coming months.
Johan Sigsgaard, Chief Product Officer of Ocean at Maersk, emphasized that careful planning has gone into the transition process. “The transition has been planned to ensure a smooth shift for customers,” he stated. Once fully integrated, the network is expected to achieve schedule reliability exceeding 90 percent.
By June, all vessels under Gemini Cooperation will follow the updated schedule, covering East-West trade routes. The network will include 29 main ocean services and 28 regional shuttle services.
These changes come as global shipping companies adapt to economic changes, geopolitical shifts, and evolving logistical challenges.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.