Japan’s Financial Products Group (FPG) has sealed ¥205bn ($1.4bn) of lease finance deals for 15 container ship newbuildings.
It is the second major container ship newbuilding finance deal the leasing company, which is better known for its real-estate finance and aircraft lease business, has struck in the past year.
In December 2021 it arranged lease finance deals valued at ¥250bn for 18 container ship newbuildings, including involvement in $838m of funding provided for to Seaspan Corporation.
FPG has not disclosed which newbuildings will be covered by its latest round of funding, or the size of the vessels, or shipyards involved in the deals.
It said the ships would start delivering from the autumn of 2023.
The deals are likely to involve the same Japanese Operating Lease with Call Option finance structure — better known as JOLCO — which was used in the Seaspan deal.
FPG said the latest deal is part of its commitment to providing transition finance for the next generation of low-emission ships.
It said the LNG dual fuel newbuildings would incorporate state-of-the-art propulsion and fuel efficiency technology, as well as adopt highly efficient hull forms and coatings. The box ships will also be equipped for cold ironing while at the port.
“We are confident that the project will contribute to implementing our key initiatives for SDGs and undertake to further promote these initiatives,” FPG said.
The company is likely to expand in the container ship sector further, as it views it as a growing market for transitional funding.
Until recently its leasing business has been heavily weighted toward the airline industry. But in 2022 it forecasts it will achieve a better balance by arranging ¥57.1bn in ship lease financing and ¥65.8bn in aircraft lease deals.
Data from VesselsValue shows FPG currently owns a fleet of 68 vessels including 44 container ships through its leasing deals.
“In order to promote the global transition to a decarbonised society, FPG has set promoting initiatives related to reducing CO2 emissions as a material objective in our basic sustainability policy. Accordingly, FPG is actively engaged in financing aircraft and ships that adopt technologies that reduce environmental impact,” FPG said.
