Equipment-based vessel financing
European equipment exports
|Potential borrower||vessel built worldwide with European built equipment (e.g. engines, propulsion, electronics, cranes, gas units, life saving systems, etc.)|
|Loan amount||part of the ship building cost depending on share of European components, min. USD 25 million, up to about USD 150 million per transaction|
|Role of KfW IPEX-Bank||bilateral structuring and arranging of investments of up to around USD 600 million, also as part of a banking consortium|
|Usual collateral packages|| |
|Loan tenor||up to 12 years post delivery, possibly with balloon payment|
|Interest rate||market-based rate, fixed or floating, based on our competitive funding|
Partner for the German maritime export industry
KfW IPEX-Bank supports the sales activities of European maritime suppliers with long term post-delivery finance which is hedged by Euler Hermes cover for internationally built ships.
The major challenge is to provide a level plain field for European equipment exporters and their competitors who are actively supported by their national export finance institutions.
Advantages of maritime component finance
KfW IPEX-Bank assists ship owners with financing for their new building orders if they buy a significant volume of equipment for their vessels from European suppliers. Experience has shown that this approach strongly encourages owners to choose European equipment. It reduces the owners' need to seek other commercial bank debt. Shipyards are composing their makers list in favour of European components and systems recognising that their buyers will benefit from the attached financing. KfW IPEX-Bank's Maritime Equipment Finance supports European equipment suppliers in their sales efforts to shipyards and owners.
Who benefits from this financing approach?
- European suppliers: Financing as add-on advantage
- Ship owners: Access to new financing sources
Over 400 German companies are producing technology and machinery for shipbuilding. We work with key suppliers of the industry, small and medium sized enterprises as well as key stakeholders including the German Shipbuilding and Ocean Industries Association (VSM ), German Engineering Federation (VDMA ), German Chambers of Commerce (AHK), Euler Hermes and others.
Maritime component finance
We put our emphasis on long-term financing for vessels with European maritime equipment. In addition we indicate our financing interest at an early project stage to increase your bidding chances. The borrower is an operator/owner of a vessel/platform. The term lasts up to 12 years after delivery of the vessel/platform. The total European supply content in one project, which may be sourced from different suppliers, should amount to USD 25 million. The loan amount for a vessel may increase due to the inclusion of other European equipment and other factors.
Your advantages of our equipment-based vessel financing
|You are a vessel owner||Improved financing options for your new building program|
|You are a shipyard|| |
|You are a supplier of vessel equipment||Offer an add-on to your quality equipment: a financing package for the vessel owner if the owner\the yard\the system integrator buys your equipment|