In a landmark move, two leading law firms orchestrated a series of green ship financing deals totaling over $1.5 billion, setting new benchmarks for sustainable maritime investments. The transactions involved multiple parties and adhered to stringent environmental standards, signaling a significant shift towards greener shipping practices.

Empowering Sustainable Maritime Growth Through Innovative Financing Solutions

Strategic Partnerships Drive Green Ship Financing

Two prominent legal firms collaborated on three distinct green ship financing agreements, collectively valued at more than $1.5 billion. These transactions were meticulously structured in alignment with the Green Loan Principles established by the Loan Market Association. One of these deals was backed by China’s Export Credit Insurance Corporation (Sinosure), underscoring the international commitment to environmentally responsible shipping.The collaboration saw one firm advising financiers and arrangers, while the other represented Hapag-Lloyd, a global leader in container shipping. This strategic partnership ensured that all parties adhered to rigorous environmental criteria, paving the way for future sustainable maritime ventures.

Hapag-Lloyd's Ambitious Fleet Expansion

In October 2024, Hapag-Lloyd made headlines by placing orders for 24 cutting-edge container ships across two Chinese shipyards. Twelve vessels, each with a capacity of 16,800 TEU, will be constructed by Yangzijiang Shipbuilding Group, aimed at expanding existing services. Meanwhile, New Times Shipbuilding Company will deliver an additional 12 ships, each with a capacity of 9,200 TEU, designed to replace older units nearing retirement within the decade.This ambitious expansion reflects Hapag-Lloyd’s commitment to modernizing its fleet with state-of-the-art, environmentally friendly vessels. By integrating advanced technologies, the company aims to enhance operational efficiency while reducing its carbon footprint, aligning with global sustainability goals.

Pioneering Green Term Loans

A cornerstone of these transactions was a $1.1 billion green term loan, secured by Sinosure, to fund the construction of six 16,800 TEU and two 9,200 TEU container ships. HSBC Continental Europe played a pivotal role as ECA coordinator, green loan arranger, and syndicate arranger, bringing together a consortium of banks including BNP Paribas, Citibank, Crédit Agricole CIB, DZ Bank, ING Bank, and SMBC.Additionally, two smaller but equally significant bilateral green term loans were arranged. A $280.8 million loan, provided by KfW IPEX-Bank, financed the construction of three 9,200 TEU vessels. Another $201 million loan from Bank of America Europe Designated Activity Company supported the development of two more 9,200 TEU ships. These innovative financial instruments exemplify the growing trend towards sustainable maritime investment.

Expert Teams Navigate Complex Transactions

Behind these groundbreaking deals stood two expert teams from leading law firms. The cross-border WFW Assets & Structured Finance team, led by London-based Partner Maren Brandes, provided invaluable guidance to arrangers and financing banks. Their expertise ensured that all transactions complied with stringent green finance principles.Simultaneously, the Hogan Lovells Frankfurt Corporate & Finance team, headed by Partner Bianca Engelmann, offered comprehensive support to Hapag-Lloyd. Their combined efforts facilitated seamless execution of these complex transactions, setting new precedents for sustainable shipping finance.