KfW IPEX-Bank has announced that it has structured the financing for the two new cruise ships to be built at Meyer Werft for Norwegian Cruise Line. The ship's contract price is nearly EUR 1.6 billion.
The financing, which will be disbursed in US dollars, is covered by export credit insurance provided by Euler Hermes and includes the favourable CIRR (Commercial Interest Reference Rate) for ship financing set by the OECD.
KfW IPEX-Bank took on the structuring for the overall financing and its commitment of the overall loan amount has ensured the order for Meyer Werft, the bank stated. The loan is to be syndicated to an international consortium of banks.
"As one of the leading ship financiers worldwide, this large-volume financing underscores our structuring expertise in the area of cruise ships," commented Christian K. Murach, responsible member of the Management Board of KfW IPEX-Bank at the signing earlier this week. "In continuing our long-standing, successful cooperation with our business partners Norwegian Cruise Line and Meyer Werft, we are also contributing to supporting both the German export industry and northern Germany as a shipbuilding location."
The new vessels will belong to the Breakaway Plus-C lass of ships. The first ship of this class is currently being built by Meyer or Norwegian. Given their gross tonnage (GT) of 164,600 each, both newbuilds will be able to accommodate almost 4,200 passengers for delivery in the second quarter of 2018 and the fourth quarter of 2019.
Within the KfW Group, KfW IPEX-Bank is responsible for international project and export finance. Its function of providing financing to boost the German and European economy is derived from the legal mandate assigned to KfW. It offers medium- and long-term financing tosupport key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling KfW's promotional mission. It is represented in the most important economic and financial centres across the globe.