Loan for Container Ship Leasing Business of Ocean Network Express Pte. Ltd., a Container Shipping Company Headquartered in Singapore
Supporting Export of Large Container Ships Built by Japanese Shipbuilders

• Region: Asia
• Marine and Aerospace
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on July 31 four loan agreements amounting to up to USD198 million (JBIC portion), with special purpose companies including SHIP No.1009 Co., Ltd. (SPCs) invested in by Financial Partners Group Co., Ltd. (FPG). The loan is co-financed with BNP PARIBAS (acting through its Tokyo Branch) (ECA Coordinator), The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch, and Citibank, N.A., Tokyo Branch, bringing the total co-financing amount to USD396 million. Nippon Export and Investment Insurance (NEXI) will provide the insurance for the loan by the private financial institutions.
     
2. This loan is provided for SPCs to purchase four 13,700 TEU^*1 container vessels built by Nihon Shipyard Co., Ltd. (NSY) and Imabari Shipbuilding Co., Ltd. (Imabari Shipbuilding). The containerships will be chartered by Ocean Network Express Pte. Ltd. (ONE) in Singapore, a container shipping company jointly invested in by Nippon Yusen Kabushiki Kaisha, Mitsui O.S.K. Lines, Ltd., and Kawasaki Kisen Kaisha, Ltd. This loan is JBIC’s first vessel-related financing utilizing a Japanese Operating Lease with Call Option (JOLCO).
     
3. Japan relies on maritime trade for more than 99% of its total trade volume, and the Japanese shipbuilding industry plays a vital role in the supply chain as a key sector responsible for the stable supply of container ships and other vessels that support ocean transport. In addition, Japanese shipyards procure over 90% of their equipment and materials domestically and they also contribute significantly toward creating jobs and supporting the economies of the regions by forming maritime clusters.
     
4. This loan will support NSY and Imabari Shipbuilding, two of Japan’s leading shipbuilders, in receiving orders for large container ships that feature concept designs for the future conversion to next-generation fuels such as methanol and ammonia, as well as for the future installation of CO₂ capture devices. The loan will also support ONE in introducing next-generation fuel ships and expanding its fleet through the procurement of new ships. The loan thus contributes toward maintaining and improving the international competitiveness of the Japanese shipbuilding and shipping industry.
     
5. As Japan's policy-based financial institution, JBIC, in collaboration with the Shipbuilders' Association of Japan, will continue to provide financial support for the export of ships built by Japanese shipbuilders and the overseas business expansion of Japanese companies or companies funded by Japanese companies, by utilizing its various financial instruments for structuring projects and performing its risk-assuming function.
     

Note

1. *1 
   A TEU (Twenty-foot Equivalent Unit) is a standard unit used in the shipping and logistics industry to quantify cargo transport capacity.