KfW IPEX-Bank is structuring the financing for the fourth and fifth Quantum-class cruise ships. Royal Caribbean Cruises Ltd. ordered the fourth Quantum-class ship from the Meyer Werft shipyard in Papenburg in May and the fifth only a few days ago, said the bank in a prepared statement.
KfW IPEX-Bank has taken on the structuring of the overall financing for Royal Caribbean and secured the order for the Meyer Werft with its commitment covering the entire loan. A considerable portion will be syndicated, i.e. the project will be financed together with an international banking consortium.
The financing has a term of 12 years from delivery. It is backed by German export credit insurance (Euler Hermes) and includes the Commercial Interest Reference Rate (CIRR) for ships, which is determined by the OECD.
KfW IPEX-Bank, Meyer Werft and Royal Caribbean have a long-standing business relationship. The new Quantum-class ships are now the 14th and 15th cruise liners that the three business partners have joined forces to create.
"We are delighted to be able to continue our successful cooperation with our valued long-standing business partners Royal Caribbean and Meyer Werft and to help Meyer Werft secure these important orders with our financing," said Christian K. Murach, responsible member of the Management Board at KfW IPEX-Bank during the signing.
Jason Liberty, Chief Financial Officer of Royal Caribbean added:
"With large-volume financing transactions as required in cruise shipping, we greatly appreciate the support provided by a proven industry expert with structuring expertise such as KfW IPEX-Bank."