Japanese shipping giant Mitsui O.S.K. Lines has signed its first green loan, which it plans to use to partially finance the construction of an LNG bunkering vessel, believed to be the world’s largest.
The loan is provided by BNP Paribas (BNPP) and the Export-Import Bank of China (CEXIM), with both banks acting as Mandated Lead Arrangers and BNPP acting as Sole Green Structuring Advisor.
“LNG bunkering vessels have a key role to play in meeting the shipping industry’s growing appetite to use LNG as a cleaner fuel alternative. With the IMO2020 SOx regulation and the upcoming IMO2050 framework on GHG and CO2 emissions, BNP Paribas is pleased to have acted as Mandated Lead Arranger and Sole Green Structuring Advisor to help MOL in financing one of the world’s largest LNG bunkering vessels. This is clearly a milestone transaction as it is the first green loan worldwide financing this vessel category,” Matthew Forrest, Head of Shipping, Southeast Asia, BNP Paribas, said.
“CEXIM advocates the idea of green credit and green finance, and endeavours to place greater emphasis on supporting green vessels that are compliant with the trend of sustainability and environmental protection. It is CEXIM’s aspiration to improve the ecological environment by lending support to green transportation,” CEXIM said.
The 18,600cbm LNG bunkering vessel, which will be operated in northern Europe to supply LNG as a fuel for LNG-fueled mega containerships is set to be delivered from Chinese shipyard Hudong-Zhonghua Shipbuilding in early 2020.
The vessel will be used in particular to supply CMA CGM’s new build LNG mega container ships, following the 10 years contract of 300 kt per annum signed with Total Marine Fuels Global Solutions (TMFGS) in December 2017.