MPCC Inks Deal for Two Dual-Fuel Methanol Ships

MPC Container Ships ASA (MPCC) has effectively secured a USD 55 million pre- and post-delivery ECA covered financing deal with Deutsche Bank and SINOSURE for its two new dual-fuel methanol vessels. These ships are set for delivery by the close of 2024 and are backed by 15-year time charter agreements with North Sea Container Line (NCL). The loan's term extends until 2036.

The two vessels are equipped with dual-fuel engines, allowing them to run on eco-friendly methanol. Consequently, the lender has internally labeled this financing as Sustainable Finance, as the funds will support an activity aligned with Deutsche Bank’s Sustainable Finance Framework eligibility criteria.

"This project highlights MPCC's capability to design and implement innovative agreements that promote the green transformation in shipping, uniting longstanding industry partners. The new financing arrangement validates the technology and structure of our project, supporting our ambitious aim of establishing the initial green transportation corridor in Northern Europe. Additionally, it secures financing at favorable rates with a long duration, maintaining our robust balance sheet and flexibility, aligning with our overall leverage strategy and capital allocation principles," stated Moritz Fuhrmann, MPCC's CFO.

Structure of Co-CEO and Executive Management

On 25 April 2024, the Board has implemented actions to reposition and fortify the executive management team for the upcoming phase of the Company's growth.

Constantin Baack will maintain his role as CEO of MPCC, a position he has held since the company's establishment. Additionally, Moritz Fuhrmann has been appointed as Co-CEO of MPCC alongside Mr. Baack, with joint responsibility for the company's management and growth. Mr. Fuhrmann will also continue in his role as CFO. The management team is further strengthened by COO Christan Rychly, who will continue to oversee the operational fleet and newbuilding projects, upholding MPCC's track record of operational excellence.

In June 2024, Constantin Baack will take on the role of CEO at MPC Capital AG ("MPC Capital"), which is the primary sponsor and largest shareholder of MPCC. Mr. Baack has been a member of MPC Capital's Management Board since 2015.

Ulf Holländer, Chairman of the Board, shared his thoughts on the Board's actions:

"Since its establishment in 2017, MPCC has emerged as a prominent global tonnage provider, delivering substantial value to our shareholders. Moving ahead, we are dedicated to upholding our appealing distribution policy, backed by abundant opportunities in the market.

Constantin Baack has been instrumental in guiding MPCC since its establishment and remains a crucial member of the leadership ensemble. Alongside Moritz Fuhrmann as Co-CEO and Christian Rychly as COO, he will continue to spearhead MPCC's endeavors. The cohesive collaboration of this team has yielded fruitful results over the past years. Mr. Fuhrmann's tenure as CFO since 2022 has seen him drive pivotal initiatives that have notably enhanced the company's financial standing and performance. Looking forward, we harbor unwavering confidence in this team's capability to sustain our trajectory of success and promise.