Watson Farley & Williams (“WFW”) and Hogan Lovells have jointly advised on three separate green ship financing transactions for Hapag-Lloyd with an aggregate value exceeding US$1.5 billion, according to the company's release.
These transactions, which align with the Loan Market Association’s Green Loan Principles, support the construction of 11 new container ships ordered by Hapag-Lloyd in October 2024.
The financing comprises:
US$1.1 billion green term loan: Backed by Sinosure, this loan will finance the construction of six 16,800 TEU vessels and two 9,200 TEU vessels. HSBC Continental Europe acted as ECA coordinator, green loan arranger, and arranger for a syndicate of banks including BNP Paribas, BNP Paribas Fortis, Citibank, Crédit Agricole CIB, DZ Bank, ING Bank, and SMBC.
US$280.8 million bilateral green term loan: This loan from KfW IPEX-Bank will finance the construction of three 9,200 TEU vessels.
US$201 million bilateral green term loan: This loan from Bank of America Europe Designated Activity Company will finance the construction of two 9,200 TEU vessels.
These newbuilds will contribute to Hapag-Lloyd's fleet modernization strategy, replacing older vessels and expanding its capacity. Twelve 16,800 TEU vessels will be built by the Yangzijiang Shipbuilding Group, while twelve 9,200 TEU vessels will be constructed by New Times Shipbuilding Company Ltd.