United European Car Carriers (UECC) has secured a “green” financing package for three of its newbuild pure car truck carriers (PCTC) on order with China Ship Building Trading and Jiangnan Shipyard Group.

The financing from Svenska SkeppsHypotek amounts to approximately USD70 million. According to UECC, the financing model makes the company eligible for reductions in borrowing costs. 

The vessels will be equipped with a battery hybrid LNG propulsion system and will be delivered from July 2021. With an overall length of 169 m and a width of 28 m, the ships will have ten cargo decks, two of which will be hoistable. As a result, the vessels will be able to accommodate high and heavy, as well as breakbulk cargoes. 

UECC, Jiangnan Shipyard and Shanghai Merchant Ship Design & Research Institute (SDARI) said they will build the PCTCs according to some of the most innovative and latest energy efficiency criteria. The vessels will meet the Tier 3 IMO NOx emission limitations coming into force the Baltic and the North Sea from 2021. 

The market for sustainable financing has been growing rapidly, with financial institutions aligning their ship finance portfolios with responsible environmental behaviour. As the need to decarbonise shipping continues to take centre stage, this will likely be a growing trend. 

Indeed a number of shipping lenders are signing up to the Poseidon Principles – a global framework for responsible ship finance.

Last week, HLPFI reported that Jan De Nul Group secured a green loan for its installation vessels Voltaire and Les Alizés.