MPCC opts for sustainable financing for two methanol dual-fuel ships

Norwegian shipping company MPC Container Ships (MPCC) has signed a $55 million pre- and post-delivery ECA-covered financing agreement with Deutsche Bank and SINOSURE for its two dual-fuel methanol newbuildings.

The two vessels feature dual-fuel engines that enable operation on green methanol. Thus, this financing has been internally classified by the lender as ‘Sustainable Finance’ as the proceeds will be used for an activity that meets the eligibility criteria of Deutsche Bank’s own Sustainable Finance Framework.

The loan matures in 2036.

“This project underlines MPCC’s ability to structure and execute innovative deals 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,” said Moritz Fuhrmann, CFO of MPCC.

“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.”

The vessels are scheduled for delivery towards the end of 2024 and are secured by 15-year time charter agreements with North Sea Container Line (NCL).

Meanwhile, MPCC’s Board has adopted measures to position and strengthen the executive management team for the next phase of the company’s development. Constantin Baack will continue to serve as CEO of MPCC, as he has done since the inception of the company. In addition, Moritz Fuhrman has now been appointed as Co-CEO of MPCC.

In June 2024, Baack will assume the CEO role at MPC Capital AG, the company’s largest shareholder.

To remind, this February, MPCC unveiled new strategic initiatives to accelerate the company’s long-term journey towards fleet renewal and decarbonization.