Hapag-Lloyd has successfully secured long-term green financing for its fleet expansion, covering the $4 billion investment required for 24 large container vessels ordered in October 2024. This financing aligns with the company’s updated Green Financing Framework and complies with the Loan Market Association’s (LMA) Green Loan Principles, as verified by DNV.
Financing Breakdown
The financing structure comprises four key components:
- Equity Contribution: Hapag-Lloyd will finance approximately $900 million of the investment from its own funds.
- Bilateral Mortgage Loans: Two banks will provide a total of $500 million in mortgage-backed loans.
- Leasing Arrangements: Three leasing structures will cover $1.8 billion of the investment.
- Sinosure-Backed Credit Facility: A syndicated credit facility of $1.1 billion will be backed by China Export & Credit Insurance Corporation (Sinosure).
This diversified approach ensures 80% of the total investment is covered, with loan maturities ranging from 10 to 18 years.
Advancing Decarbonization Efforts
The 24 new ships will be constructed in China and equipped with cutting-edge, low-emission, fuel-efficient high-pressure liquefied gas dual-fuel engines. These vessels will be LNG-powered and ammonia-ready, supporting Hapag-Lloyd’s strategy for sustainable shipping. Furthermore, the ships will be capable of operating on biomethane, potentially reducing CO₂e emissions by up to 95% compared to conventional fuels.
Mark Frese, CFO/CPO of Hapag-Lloyd AG, emphasized the significance of this financing:
“We are continuously modernizing our fleet to deliver high-quality service and achieve our ambitious decarbonization goals. 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.”
Commitment to Net-Zero Goals
Hapag-Lloyd remains committed to the 1.5-degree target of the Paris Agreement. The company aims to reduce absolute greenhouse gas emissions by one-third by 2030 (compared to 2022 levels) as part of its long-term strategy to achieve a net-zero fleet operation by 2045.
Delivery Timeline
The 24 LNG dual-fuel container ships, with a combined capacity of 312,000 TEU, will be delivered between 2027 and 2029. These new vessels will reinforce Hapag-Lloyd’s position as a leader in sustainable shipping while meeting growing global trade demands.
About Hapag-Lloyd
Hapag-Lloyd is one of the world’s leading liner shipping companies, operating a fleet of 292 modern container vessels with a total transport capacity of 2.3 million TEU. The company’s global network spans 399 offices across 139 countries, ensuring reliable cargo transportation through 113 liner services connecting more than 600 ports worldwide. In addition to shipping operations, Hapag-Lloyd holds equity stakes in 20 terminals across key regions, further strengthening its logistics infrastructure.
This financing milestone underscores Hapag-Lloyd’s commitment to green shipping, furthering its efforts toward a cleaner and more efficient maritime industry.
Source Hapag-Lloyd