KfW IPEX-Bank finances two state-of-the-art vessels for offshore industry

Frankfurt am Main (ots) -

- Well intervention vessels for maintenance of offshore oil wells
- Vessels being constructed at FSG shipyard in Flensburg

KfW IPEX-Bank co-arranges the financing of two state-of-the-art
well intervention vessels for Siem Offshore Inc.'s subsidiary Siem
Offshore Rederi AS. Siem Offshore Inc. is an important new customer
for KfW IPEX-Bank in the high-potential offshore segment.

The two vessels are to be built by Flensburger
Schiffbau-Gesellschaft (FSG) and are scheduled to be delivered in
February and July 2016. For the shipyard, this order is another step
towards expanding its range of products and services in the offshore
specialist vessels segment. It is also key to safeguarding jobs in
Flensburg. In addition to structuring this project, Siem Industries
Inc., which is the largest shareholder in Siem Offshore Inc. has
taken over FSG as the new owner.

"This contract shows that high-quality specialist vessels from
Germany are in demand around the world," said Christian K. Murach,
Member of the Board of Directors of KfW IPEX-Bank, when signing the
contract. "We are delighted that Siem Offshore has commissioned FSG
with this order, enabling it to build its reputation in the promising
offshore market."

KfW IPEX-Bank as Mandated Lead Arranger is providing 50% of the
pre- and post-delivery financing of up to USD 350 million. It is
covered by export credit insurance from the government (Hermes cover)
and includes the shipping CIRR (Commercial Interest Reference Rate)
determined by the OECD. Within the transaction, KfW IPEX-Bank is
acting as the Euler Hermes and CIRR agent and also as the
documentation bank. The term is 12 years from delivery.

The vessels have already been chartered to the US offshore
specialist Helix Energy Solutions for seven years after their
delivery. Fitted with comprehensive, technical offshore equipment
from Helix and manned by the specialised and experienced Siem
Offshore team, they are to operate off the coast of Brazil.

Well intervention vessels are employed to foster (deepsea)
offshore oil fields. In addition to improving well production,
maintenance work can also be performed. Once the oil resources have
been depleted, the vessels are used to securely decommission and seal
the wells which is why the requirements regarding security,
reliability and positioning of the vessels are demanding and of
utmost importance. Well Intervention Vessels are also used for
hazard prevention according to statutory regulations. In the Gulf of
Mexico, for example, a vessel of this kind must be on standby on the
open sea at all times during drilling and production to guarantee an
immediate response in crisis situations.

About KfW IPEX-Bank GmbH

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 to support 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.

Press Contact:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: E-Mail: Dela.Strumpf@kfw.de
Tel. 069 7431-2984, Fax: 069 7431-9409, E-Mail:
info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de