The Japan Bank for International Cooperation (JBIC) will provide buyer’s credit to finance eight 3,055-teu container ship newbuildings ordered by Taiwan’s Wan Hai Lines at Nihon Shipyard.
The funding has been provided to subsidiary Wan Hai Lines (Singapore).
Citi and Mizuho banks are acting as co-financiers in the deal with export insurance provided by Nippon Export & Investment Insurance.
Nihon Shipyard is a joint venture company by Japan Marine United (JMU) and Imabari Shipbuilding.
Wan Hai Lines ordered a total of 24 3,055-teu container ships at the yard in 2021 in two tranches.
They are reported to have cost about $47.1m each.
The total value of the JBIC finance package has not been disclosed.
This is the second time Wan Hai Lines has called on the bank to finance newbuilding projects.
In 2020, it used the finance scheme for eight 3,036-teu boxships at JMU.
State-backed JBIC was established in 2012 to provide finance to promote domestic industry and overseas development to secure resources for Japan.
It provides credit for newbuilding projects as part of government policy to support local shipbuilders and is seeking further investment opportunities.
Announcing the Wan Hai deal, the bank said: “The JBIC, in collaboration with the Shipbuilders’ Association of Japan, will continue to provide financial support for the export of ships built by Japanese shipbuilders, by utilising its various financial instruments for structuring projects and performing its risk-assuming function.”
