October 01, 2015: Hapag-Lloyd has secured a US$372 million,12-year financing agreement for five 10,500 TEU new-built vessels.
The banking syndicate was led by joint bookrunners Credit Agricole, DNB, HSBC and UniCredit. As the order was placed with a Korean shipyard, the Korean Export Credit Agencies K-sure and KEXIM agreed to provide financing support for Hapag-Lloyd to facilitate the investment with the Korean yard and will support the overall financing.
The company will use the loan to finance the vessels that were ordered in April 2015 for delivery between October 2016 and May 2017. The total investment volume of the order lies in the mid three-digit million US$ range.
The five ships will be deployed primarily on the South American routes and incorporate 2,100 reefers plugs.
Hapag-Lloyd decided in parallel to increase its existing revolving credit facility with the financing banking syndicate from US$95 million to US$200 million.
"We secured the financing for our new vessels at attractive financial terms", said Nicolás Burr, Chief Financial Officer at Hapag-Lloyd. "In addition, based on this new benchmark we were able to significantly reduce our interest burden." The company said it had reduced its financing interest by approximately US$40 million as a result.