Anchor Ship Partners launches $5.65bn Japanese green ship fund

Japanese ship finance giant Anchor Ship Partners is launching a huge fund to build up an LNG carrier fleet to lease to the nation’s top three lines, Nippon Yusen Kaisha, Mitsui OSK Lines and Kawasaki Kisen Kaisha.

Japanese newswire Nikkei says the new Y600bn ($5.65bn) fund will start by ordering LNG-fuelled gas carriers, before then ordering ships powered with new fuels such as hydrogen and ammonia. Hydrogen carriers, a nascent shipping sector that Japan is leading, are also being eyed.

Anchor will seek investments in the new green ship fund from regional banks and other financial institutions. It aims to provide double-digit annual yields, largely from lease income, and to operate the fund for 15 years.

The fund will be reviewed periodically by Sumitomo Mitsui Trust Bank to assess whether it is having a positive environmental impact.

Anchor’s first fund launched in 2007, created by a team of ship financiers at what is now Mizuho Bank. The company has launched a total of four funds since it was founded.