KfW IPEX-Bank has announced that it has structured a financing package for two cruise ships for Dream Cruises of the Genting Hong Kong Group being built by the three yards of MV Werften.
An international consortium led by KfW IPEX-Bank will provide financing of more than 2.6 billion euros. The consortium consists of six international banks.
The financing package comprises around 2.6 billion euros with a total investment volume of just under 3.1 billion euros. The structure will be backed by export credit guarantees of the Federal Republic of Germany and the Finnish export credit agency Finnvera, as well as by a guarantee from the state of Mecklenburg-Western Pomerania. It also benefits from the CIRR (Commercial Interest Reference Rate) for ships in accordance with the OECD consensus.
KfW IPEX-Bank said it has worked with the Genting Group for about 20 years and has developed in close cooperation with Genting the overall financing for the Global Class Ships over the last three years since Genting purchased MV Werften.
In addition to KfW IPEX, the banking consortium includes BNP Paribas, Citibank, Crédit Agricole, Credit Suisse and DNB.
A substantial portion of the loan amount will be further syndicated to more than 10 other German and international banks.
“Due to unavailability of cruise ship slots in the next 10 years, we made a conscious decision to invest in MV Werften in order to build the ships we needed for our three cruise brands in a timely manner,” said Tan Sri Lim, chairman and chief executive officer of Genting Hong Kong Ltd, in a prepared statement.
The Global Class ships are designed for the growing Asian cruise market, which is said to have the fastest growing middle class. The ships are 204,000 tons each, with 2,500 cabins and 5,000 lower berths. As each cabin can accommodate up to four passengers, the ships have capacity of up to 9,500 passengers and 2,500 crew during peak holiday seasons.
The Global Class ships will be the largest cruise ships ever built in Germany and the world’s largest cruise ships in terms of passenger capacity. Delivery of the ships is scheduled for early 2021 and early 2022.
Genting Hong Kong has the three brands Star Cruises, Dream Cruises, and Crystal Cruises as well as other investments in the travel and leisure industry. MV Werften has 2,900 employees and some of the largest docks as well as covered production facilities in Europe. In its 70-year history, the three shipyards have designed, produced and equipped around 2,500 ships.