London office advises Stena Line on ECA-backed JOLCOs

Global law firm Norton Rose Fulbright has advised longstanding client, Stena Line, on two ECA-backed Japanese Operating Leases with Call Options (JOLCOs), the first in the passenger ferry sector and a rare example of ECA-backed JOLCOs in the shipping sector.  

The JOLCOs, which combine ECA financing with an operating lease containing a purchase option, were for two E-flexor class RoPax ferries constructed at China Merchants and were backed by Chinese export credit agency Sinosure.

The equity funding arrangements were arranged by FPG-AIM and the underlying loan arrangements were arranged by BNP Paribas. Nishimura & Asahi and Stephenson Harwood advised the equity arrangers and the lenders, respectively. 

The modern ships have been specially designed to be both fuel efficient and modular. They include technologies developed to significantly reduce fuel consumption and therefore carbon footprint, as well as being capable of conversion to methanol or LNG.  

Simon Hartley, who was lead partner on the transaction, said: 

“We are very proud to have worked with our good friends at Stena on this on this project, which saw us advise on two rare examples of ECA-backed JOLCOs in the shipping sector.”

Simon Hartley was supported by senior associate Matthew Bambury. The team also included counsel Catherine Johnson and senior associate Llian Williams.

Norton Rose Fulbright’s shipping team offers the full range of legal services needed by today’s shipping companies. Its specialist shipping lawyers advise on areas ranging from complex structured finance and anti-competitive actions to ship conversion disputes, offshore disputes, the latest environmental regulation and the impact of blockchain and the digitalisation of the whole industry.