KfW IPEX-Bank finances order for two reduced-emission cruise ships from the Meyer Turku shipyard

Frankfurt am Main (ots) -

- Cruise liners to be largely powered with LNG propulsion
- Consortium led by KfW IPEX-Bank provides over EUR 2.5 billion
multi-ECA financing
- Support for European shipbuilding with a high share of supplies
from Germany

KfW IPEX-Bank is financing two reduced-emission cruise ships for
Royal Caribbean Cruises Ltd. (RCCL). The EUR 2.5 billion plus in
borrowed funds needed to procure the ships is being provided by an
international consortium led by KfW IPEX-Bank. The ships, which will
be built at the Meyer Turku shipyard in Finland, will be largely
propelled by liquefied natural gas (LNG) and will be able to carry
over 5,500 passengers each. The ships are due to enter into service
in 2022 and 2024, respectively.

Taking stock of the financing, Andreas Ufer, Member of the
Management Board of KfW IPEX-Bank, states: "Cruise ships are booming,
and the aim is to shape this trend for the lowest possible level of
emissions for mankind and nature. We are pleased that our financing
is helping to advance LNG propulsion." Jan Meyer, CEO of Meyer Turku,
adds: "This order will occupy our production until 2024. This not
only affects our location in Turku, but also our whole supply network
both in Finland and Germany on a significant scale. This combination
of our successful distribution and the closely-tailored structured
finance will sustainably secure jobs in Germany and Europe."

Within the complex financing transaction for the two cruise
liners, KfW IPEX-Bank stepped up as the syndicate leader, initial
mandated lead arranger (MLA), facility agent, documentation agent and
Hermes agent. The banking syndicate also includes BNP Paribas, HSBC,
Commerzbank, Santander, BBVA, Bayern/LB, DZ Bank, JPMorgan and SMBC.
This is the largest syndicate financing package that KfW IPEX-Bank
has ever structured and led on its own. KfW IPEX-Bank is contributing
EUR 686 million to the total financing package. Alongside a cover
from the Finnish ECA, Finnvera, the financing is also backed by
export credit insurance from the Federal Republic of Germany (Hermes
cover). Finnish Export Credit (FEC), a subsidiary of Finnvera, will
make up the majority of the funds at the OECD-set ship refinancing
scheme commercial interest reference rate (CIRR). The loans, granted
separately for the ships, each have a term of 12 years from the
respective ship delivery date. A substantial number of German
manufacturers, among them numerous small and medium-sized
enterprises, will supply parts of significant value for each ship,
including the complete hull and main engine coming from the Neptun
Werft shipyard in Rostock, Germany.

Both ships will be equipped with dual-fuel technology (LNG and
marine diesel) and according to the borrower they will be largely
powered by LNG. Additionally, RCCL is testing fuel cells as a
supplemental energy source aboard an existing ship in preparation for
use on the Project Icon vessels. RCCL hopes that fuel cells will play
a significant role in powering the ship's hotel functions.

Pressekontakt:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: E-Mail: Antje.Schlagenhaufer@kfw.de
Tel. 069 7431-4009, Fax: 069 7431-9409,
E-Mail: info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de

Original-Content von: KfW IPEX-Bank, übermittelt durch news aktuell