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

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

The two ships are equipped with dual-fuel engines that enable sailing on green methanol. This financing has therefore been classified internally 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 to support the green transition in shipping and bring 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 creating the first green transport corridor in Northern Europe.” said Moritz FuhrmannCFO of MPCC.

“It also adds financing at attractive rates with long maturities, maintaining our strong balance sheet and flexibility, in line with our overall leverage strategy and capital allocation principles.”

The ships are scheduled for delivery at the end of 2024 and are covered by a 15-year time charter agreement with North Sea Container Line (NCL).

In the meantime, MPCC’s Board of Directors has taken steps to position and strengthen the executive management team for the next phase of the company’s development. Constantijn Baack will continue to serve as CEO of MPCC, as he has done since the company’s inception. In addition, Moritz Fuhrman has now been appointed co-CEO of MPCC.

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

As a reminder, MPCC unveiled new strategic initiatives in February to accelerate the company’s long-term journey towards fleet renewal and decarbonization.