Singapore/Loan Insurance for Container Ship JOLCO Project for Singapore-headquartered OCEAN NETWORK EXPRESS PTE. LTD.
- First Ship JOLCO Project –

Nippon Export and Investment Insurance (NEXI: President Atsuro Kuroda) has decided to provide loan insurance for domestic financing related to a transaction under the Japanese Operating Lease with Call Option (hereinafter referred to as "JOLCO") scheme by OCEAN NETWORK EXPRESS PTE. LTD. (hereinafter referred to as "ONE") a company headquartered in Singapore. This financing supports ONE’s procurement of four large 13,700 TEU container ships built by Nihon Shipyard Co., Ltd. and Imabari Shipbuilding Co., Ltd..

This financing is a syndicated loan to be provided by BNP PARIBAS (acting through its Tokyo Branch) (ECA Coordinator), The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch, Citibank, N.A., Tokyo Branch, and Japan Bank for International Cooperation (JBIC). NEXI will underwrite loan insurance for the portion of the loan provided by the commercial banks.

This will be the first ship financing project NEXI underwrites under the JOLCO scheme, made possible by the revision of the Ministry of Economy, Trade and Industry ordinance in 2022. By utilizing the JOLCO scheme, this initiative aims to enhance the international competitiveness of the Japanese shipbuilding industry, one of Japan’s major industries that plays an important role in the regional economy through its industrial clusters.

ONE is an international container shipping company established in Singapore in July 2017 through the integration of the container shipping businesses of three major Japanese shipping companies: Nippon Yusen, Mitsui O.S.K. Lines, and Kawasaki Kisen. ONE continues to expand its fleet through this new ship order, and this financing will support ONE’s growth strategy by facilitating its fleet expansion.

In addition, the ships involved in this project are ammonia methanol-ready vessels, meaning the financing will also contribute to the decarbonization efforts of the shipping industry by supporting the introduction of next-generation fuel ships.

NEXI, as a governmental financial institution of Japan, will continue to actively support the export and overseas business development of Japanese companies.

Reference

Insured	BNP PARIBAS (acting through its Tokyo Branch) (ECA Coordinator) , The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch, Citibank, N.A., Tokyo Branch
Borrower	Japanese SPC established by Financial Partners Group Co., Ltd. (FPG)
Tenor	Approx. 12 years
Covered risks	Political Risk 100%, Credit Risk 95%

Contact: Loan Insurance Department, Infrastructure Group, Tel:+81-(0)3-3512-7674