Norton Rose Fulbright Advises on landmark ECA-backed JOLCO financing for four next-generation container vessels

Global law firm Norton Rose Fulbright has advised Ocean Network Express Pte. Ltd. (ONE) on a landmark ship financing transaction to support the construction and acquisition of four state-of-the-art 13,700 TEU container vessels.

The financing was arranged for four special purpose companies incorporated by Financial Partners Group Co., Ltd. (FPG), with debt financing to be provided by Japan Bank for International Cooperation (JBIC) and mandated lead arrangers BNP Paribas (acting through its Tokyo Branch) (ECA Coordinator), The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch, and Citibank, N.A., Tokyo Branch. Nippon Export and Investment Insurance (NEXI) provided insurance for the portion of the loan extended by the commercial banks.

The vessels, to be constructed by Nihon Shipyard Co., Ltd. and Imabari Shipbuilding Co., Ltd., will be chartered by Ocean Network Express Pte. Ltd. (ONE), a leading international container shipping company headquartered in Singapore. ONE is jointly owned by Nippon Yusen Kabushiki Kaisha, Mitsui O.S.K. Lines, Ltd., and Kawasaki Kisen Kaisha, Ltd.

This transaction represents JBIC’s and NEXI’s first participation in vessel-related financing utilising the Japanese Operating Lease with Call Option (JOLCO) scheme. The vessels are designed for future conversion to next-generation fuels such as methanol and ammonia and are ready for the installation of CO₂ capture devices. These features underscore the commitment of all parties to supporting the decarbonisation of the shipping industry and the transition to sustainable maritime transport.

Paul Coggins, the Tokyo-based partner who led the cross-border Norton Rose Fulbright team on the transaction, commented:

“We are delighted to have supported Ocean Network Express on this landmark transaction. The successful completion of this deal is a testament to the collaborative efforts of all parties involved and the innovative approach required to navigate the complexities of a first-of-its-kind JOLCO financing with JBIC and NEXI participation. Our team’s deep sector knowledge and experience in Japanese-supported cross-border ship finance enabled us to anticipate and address the unique legal and regulatory challenges presented by this transaction. We are proud to have played a part in advancing sustainable shipping and supporting ONE’s growth ambitions.”

The Norton Rose Fulbright team on this deal also included Singapore partner Sue Ann Gan and lead associate Sophie Polisena, and from London, tax partner Matt Hodkin and associate Giulia Schwartz.