KfW IPEX-Bank finances new LNG powered fast ferry for Tallink
News from 2019-07-09 / KfW IPEX-Bank
KfW IPEX-Bank and AS Tallink Grupp's subsidiary Tallink Superfast Ltd. have signed a loan agreement in the amount of EUR 197.6 million to finance the new EUR 247 million LNG (Liquefied Natural Gas) powered fast ferry currently under construction at Rauma Marine Constructions Oy in Finland.
KfW IPEX-Bank acts as arranger for the loan and is providing the long term financing. Finnish Export Credit Agency “Finnvera” guarantees 95 per cent of this post-delivery buyer credit.
The loan is secured by the mortgage on the new vessel and the corporate guarantee of AS Tallink Grupp. This OECD-term export credit loan will be drawn upon delivery of the vessel, presumably in the beginning of 2022 and has a final maturity of twelve years from the drawdown.
“For us, this project is another step in our aim to support the energy change at sea”, says Andreas Ufer, member of the Management Board of KfW IPEX-Bank responsible for Transport Sectors, Syndications & Treasury. The new ferry will be dual fuel operated, so that LNG will be the main fuel. The ferry will host 2.800 passengers and will be operating on the Tallinn-Helsinki route, an important route between the two capital cities. On top of the environmentally friendly LNG engine, the ferry will be equipped with the latest technologies and innovative solutions. Tallink aims to build the most energy efficient and environmentally friendly vessel on the Baltic Sea. The ship construction is expected to be completed by the beginning of 2022.
With this financing, KfW IPEX-Bank is in addition supporting a European shipyard in the international marketplace and at the same time contributes to the preservation of jobs in the Maritime Industry.