KfW IPEX-Bank Finances Another Newbuild for Carnival Corp.

P&O Cruises UK Iona

KfW IPEX Bank has announced that it is providing approximately 786 million euros in financing for Carnival Corporation for a yet unnamed newbuild for P&O Cruises, being built at Meyer Werft Papenburg, for a 2022 delivery.

KfW IPEX said it is handling the entire structuring of the financing and taking on the roles of book runner, initial mandated lead arranger (MLA), facility  agent and export credit agency (ECA) agent.

The plan is to syndicate up to 80 percent of the financing amount. The financing has a term of 12 years from the date of delivery. It is backed by export credit insurance issued by the Federal Republic of Germany (Hermes cover) and encompasses the Commercial Interest Reference Rate (CIRR) for ships, which is determined by the Organization for Economic  Co-operation and Development (OECD).

"With this financing we are once again demonstrating our competence in arranging tailored financing for our customers in the cruise segment," said Andreas Ufer, member of the management board of KfW IPEX-Bank, in a prepared statement.

"We are enabling our long-standing customer Carnival Corporation, which placed the order with Meyer Werft Papenburg, to build a new flagship."

A sister ship to P&O’s 183,900-ton Iona, slated for delivery in 2020, the new ship will also have a low-emission dual-fuel engines using LNG and marine diesel, and will normally run on LNG. She will be able to accommodate approximately 5,200 guests (lower berths).

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