Hamburg Commercial Bank (HCOB) is providing $190 million in refinancing to the Low Emission Methanol Shipping Company Fund (LEMSCO), a joint initiative by Proman and Stena Bulk.

Structured with a syndicate partner, the five-year financing supports six methanol dual-fuel IMO type 2 tankers, HCOB said in a statement on its website on Wednesday.

Launched in 2023, LEMSCO Fund I is the first fund dedicated solely to methanol-powered ships.

The 50,000 dwt vessels, set to be chartered to Proman and Stena Bulk for 15 years.

These ships can run on either conventional marine fuels or methanol, including green methanol, which can cut CO2 emissions by up to 90%.

“We are delighted to continue supporting the innovative LEMSCO fund with this refinancing,” Jan-Philipp Rohr, Global Head of Shipping at HCOB, said.

“Their state-of-the-art technology means the ships are contributing to the decarbonisation of the maritime sector, a commitment we are very pleased to support.”

“With this refinancing, the LEMSCO fund is continuing to pave the way for a more environmentally friendly future in shipping,” Andrew Craig, Managing Director Corporate Finance at Proman, said.