Sinosure Insures $55 Million Financing for MPCC's 'Carbon-Neutral' Shipping Project

Sinosure, the China Export & Credit Insurance Corporation, has recently provided insurance for a $55 million pre- and post-delivery ECA covered financing agreement between Norwegian shipowner MPC Container Ships (MPCC) and Deutsche Bank for two "carbon-neutral" container ships.

These two vessels, scheduled for delivery by the end of 2024, are backed by 15-year time charter agreements with North Sea Container Line (NCL). According to MPCC, the loan will mature in 2036.

The construction of these vessels will be overseen by the Chinese-based shipyard Taizhou Sanfu Ship Engineering. Equipped with dual-fuel engines enabling operation on green methanol, the vessels represent a significant step towards environmental sustainability in shipping.

Deutsche Bank has classified this financing arrangement as sustainable finance, aligning with its Sustainable Finance Framework.

Moritz Fuhrmann, CFO of MPCC, expressed his enthusiasm for the project, highlighting its role in supporting the green transition in shipping and bringing together long-term industry partners.

“The new financing agreement serves as validation of the technology and structure of this project and our ambitious goal of establishing the first green transportation corridor in Northern Europe. It furthermore adds financing at attractive rates with long duration, thus preserving our strong balance sheet and flexibility, in line with our general leverage strategy and capital allocation principles,” said Moritz Fuhrmann.