Stolt Tank Containers, a global provider of logistics for the shipment of bulk liquid chemicals and food grade products, has closed an innovative Japanese operating lease with call option (Jolco) combined with a sustainability-linked loan.

The interest rate under the term loan facility is linked to an annual environmental, social and governance (ESG) score calculated and assigned to Stolt’s business.

Stolt has a global network of offices, depots and hubs, and a fleet of more than 43,500 tank containers.

Watson Farley & Williams advised ING Bank as agent and security agent, and ING Bank (Tokyo Branch) as bank and mandated lead arranger on the US$127.66 million sustainability-linked Jolco. Financial Products Group (FPG) acted as equity provider. FPG Asset & Investment Management is the Jolco arranger for three portfolios of container boxes. The lessee is Stolt Tank Containers Leasing, a subsidiary of Stolt-Nielsen Limited.

Tokyo-based FPG is the leading equity arranger in the Jolco market. Alongside shipping and aircraft leases, portfolios of container boxes have become a popular asset classs for Japanese tax investors.