Ship & Aircraft Finance(en) Archives - Castrén & Snellman

Finnlines – Loan from EIB with guarantees from Nordea and Finnvera to finance part of the MEUR 100 Environmental Technology Investment Programme

Maintaining and renewing a fleet, whether consisting of ships or aircraft, is capital-intensive and requires extensive financing, which can pose a challenge in current market conditions.

As a result of a tier-one Shipping & Logistics practice and leading banking and finance expertise, we offer first-class advice in ship and aircraft finance.

In addition to traditional ship and aircraft financing, our firm’s recognised banking and finance expertise can further expand your options and provide innovative and to the point solutions in all market conditions.

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OP Finland Infrastructure – EUR 45 million investment in ESL Shipping

We acted as legal advisor to OP Finland Infrastructure LP in its investment in ESL Shipping Ltd, a Finnish shipping company. Varma Mutual Pension Insurance Company co-invested in the company. The investment was made against new shares in ESL Shipping, and the EUR 45 million co-investment corresponds to a 21.43 % holding in the company. The aim of the investment is to accelerate ESL Shipping’s green transition. ESL Shipping Ltd is a Finnish shipping company. Its main shareholder is Aspo Plc. OP Finland Infrastructure is a fund investing in Finnish infrastructure. The fund is managed by OP Financial Group. Varma Mutual Pension Insurance Company is a Finnish pension insurance company. In September 2023 the value of its investment portfolio amounted to EUR 57.5 billion.

Finnlines – Deliveries of three new hybrid cargo vessels

We were the legal adviser in three arrangements for the financing of the acquisition of three new ultra-green hybrid ro-ro vessels in the Eco class (Finneco I, II and III) by Finnish shipping company Finnlines Plc. The Chinese shipyard China Merchants Jinling Shipyard (Jiangsu) delivered Finneco I to Finnlines on 28 April 2022, Finneco II on 30 May 2022 and the third and last of three hybrid ro-ro vessels, Finneco III on 6 June 2022. The ships are 238 metres long, each with a cargo capacity of 5,800 lane metres. Consequently, the vessels can carry 400 trailers per voyage. The hybrid ro-ro vessels provide an increase of cargo intake up to 38%, but they reduce CO2 emissions by almost 43%. The three vessels represent another move towards sustainable shipping as they are energy-efficient. Energy saving is the best way to reduce the emissions. The vessels have the highest Finnish/Swedish ice class. “Part of Finnlines’ EUR 500-million Green Newbuilding Programme, Finnlines introduced three new Eco-class hybrid ro-ro vessels in 2022. The three giant vessels operate in the Baltic–North Sea–Bay of Biscay service. With state-of-the-art technology they do not only offer economies of scale to our customers, but the environmental footprint will also be reduced. Finneco vessels provide added value to Finnlines and its customers”, says Tom Pippingsköld, President and CEO, Finnlines.

Finnlines – Acquisition of two new Superstar ro-pax vessels

We were the legal adviser in two arrangements for the financing of the acquisition of two new Superstar ro-pax vessels (Finncanopus and Finnsirius) by Finnish shipping company Finnlines Plc. Finncanopus and Finnsirius are a part of Finnlines’ EUR 500 million Green Newbuilding Programme which includes two eco-sustainable ro-pax vessels as well as three hybrid ro-ro vessels. The first hybrid ro-ro vessel, Finneco I, was delivered to Finnlines at the Chinese shipyard China Merchants Jinling Shipyard (Jiangsu) on 28 April 2022, Finneco II on 30 May 2022 and Finneco III on 6 June 2022. The first hybrid Superstar ro-pax vessel, Finnsirius, was delivered to Finnlines at the China Merchants Jinling Shipyard in Weihai, China, on 18 July 2023. The second vessel, Finncanopus, is expected to be delivered by the end of 2023. Finnsirius will enter Finnlines’ Finland–Sweden line and the traffic is scheduled to start in September 2023. Finncanopus will join Finnsirius by the end of 2023. The two ships are the largest ro-pax vessels in the Finnlines fleet. With a length of about 235 metres, their loading capacity will be 5,200 lane metres for rolling freight and 1,100 for passengers. In other words, the vessels have the capacity to carry approximately 200 cars and 290 trailers or 250 trucks per voyage. The vessels are as emission-free as possible and the Superstar vessels will be equipped with innovative technology. The air lubrication system creates air bubbles, which reduce friction and hydrodynamic resistance. The onshore power supply will provide an alternative source of energy, enabling emission-free operations in port. A high-powered battery bank will be charged in port and generate power at sea. Two-speed reduction gears will improve propulsion efficiency and save fuel. Green values have also been prioritised in the onboard design and in technological choices. As an example, lighting and ventilation can be adjusted automatically in the passenger accommodation, which reduces energy consumption. The new vessels will feature high-quality restaurants, a sauna and spa section, business and lounge facilities, extensive shopping areas and a variety of other services. The scenic views of the archipelago have been central in the design of the vessels. “Finnlines’ Green Newbuilding Programme has been a massive investment which will benefit our freight customers and private passengers. These hybrid ro-pax vessels are not only the largest in the company fleet so far, but they transport cargo in a more sustainable manner. For example, the vessels have been equipped with enormous high-powered battery banks and onshore power supply in order to have zero emissions while at port,” says Tom Pippingsköld, President and CEO, Finnlines. “Our investment will strengthen services to our freight customers as well as to our passengers,” Pippingsköld continues.

VR FleetCare – Public procurement of refurbishment of trains

Our client VR FleetCare was selected as the contractual supplier in a public procurement concerning the refurbishment of Flirt electric train bogies of Metropolitan Area Rolling Stock Ltd. We advised VR FleetCare in the competitive tender process which was conducted as a negotiated procedure in accordance with the Utilities Procurement Act (1398/2016). The Flirt trains operate as commuter trains in the Helsinki area. The object of the agreement is the periodic refurbishment and general repairs of the bogies of 81 trains according to the kilometres travelled between 2024 and 2030. The agreement also includes a four-year extension option.

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