ESL Shipping secures new €70M loan to finance next-gen green ships

Finland-based shipowner ESL Shipping has signed a €70 million loan agreement with Swedish finance provider Svenska Skeppshypotek to partially finance a series of four methanol-fueled 17,000 dwt Handysize vessels.

The loan, with a maturity of 15 years, is part of the financing of ESL Shipping’s investment in the eco-friendly ship quartet ordered in October 2024.

“We are delighted to continue our collaboration with Svenska Skeppshypotek in the financing of next-generation green ships. Partnering with a financial institution that possesses deep expertise in the maritime sector and a strong commitment to sustainable shipping is highly valuable,” Mikki Koskinen, Managing Director of ESL Shipping, commented.

”ESL Shipping is a company that has a strong focus on its customers through long-term strategies and a forward-leaning attitude towards technical developments and the green transition. The company is also very important for the Finnish and Swedish industries, and the new vessels will be at the forefront of the net-zero emission race. These are all attributes Svenska Skeppshypotek looks for in a partner,” Arne Juell-Skielse, CEO of Svenska Skeppshypotek, explained.

Equipped with a 1MWh battery pack, the new 1A ice class vessels can be operated fossil-free by using green methanol. The total value of the four ships is approximately €186 million.

The new vessels are being built at China Merchants Jinling Shipyard (Nanjing) in China. The vessels are scheduled to enter service starting from the third quarter of 2027. The fourth ship of this series is expected to join the ESL Shipping fleet in the first half of 2028.

They will feature a shore power connection, a sewage treatment unit, a cargo hold wash water recovery system, and a ballast water treatment system (BWTS)

Earlier this month, ESL Shipping also signed a 10-year, €45 million loan agreement with the Nordic Investment Bank (NIB) to finance the construction of the four 1A ice-classed green Handysize units.