BNP Paribas, KfW and cohort of banks ink ECA-backed green loan with Hapag-Lloyd

Global shipping company Hapag-Lloyd has secured an export credit agency (ECA)-backed syndicated green loan from a group of nearly a dozen banks. BNP Paribas and German development bank KfW Ipex-Bank structured and coordinated the US$417mn facility, which will be used to finance the firm’s purchase of three container ships from South Korea. Nine other banks took part in the deal, which has a 12-year maturity date and is backed by the Korea Trade Insurance Corporation (K-sure). This particular agreement provides financing for three out of a total of six ultra-large container ships ordered by Hapag-Lloyd in December, with the vessels now due to be constructed in Korea and delivered in 2023. KfW notes that the financing fulfils the Loan Market Association’s (LMA’s) green loan principles, with assurance and risk management company DNV GL providing an expert opinion. The LMA published the principles in 2018 in a bid to create a widely accepted framework for green loans and to guard against the risk of so-called “greenwashing”. There are four core components to the principles, namely that the proceeds must be used for green projects, that there’s a process for project evaluation and selection, a management of proceeds – putting funds into… continue reading

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Source: CTRM Center

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