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MOL secures BNPP and CEXIM ‘green loan’ to build LNG bunker tanker

24 Dec 2019

Tokyo-based Mitsui O.S.K. Lines, Ltd. (MOL) on Monday (23 December) said it has signed its first green loan to partially finance the construction of the world's largest liquefied natural gas (LNG) bunkering vessel, which will be owned and operated by MOL.

Net proceeds will exclusively finance the construction of an 18,600 cbm LNG bunkering vessel, which will be operated in northern Europe to supply LNG as a fuel for LNG-fuelled mega Containerships after being delivered from shipyard in early 2020. 

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.

Green Loans are used to raise funds for businesses aimed at protecting and improving the environment.

“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,” said Matthew Forrest, Head of Shipping, Southeast Asia, BNP Paribas.

“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. As a leader in both shipping finance and sustainable finance, BNP Paribas is driving green initiatives for clients globally as the shipping industry goes through a period of rapid transformation to drastically cut its carbon output and improve its sustainability performance.”

In early December, Manifold Times reported Total Marine Fuels Global Solutions (TMFGS) and MOL signing a long-term charter contract for a second large LNG bunker vessel, to be delivered in 2021. She will be positioned in the Marseille-Fos area in France.

This bunker vessel will be built by Hudong-Zhonghua Shipbuilding in China. She will have a capacity of 18,600 m³ for a length of about 135 meters and will be fitted with the Mark III membrane containment system provided by French company GTT.

Related: Total and CMA CGM enter LNG bunker agreement for Marseille-Fos ops

Picture credit: Total
Published: 24 December, 2019


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