Tallink Takes Loan to Finance RoPax Newbuilding

Estonian ferry operator Tallink Group AS has signed a loan agreement with Nordea Bank Finland Plc, securing EUR 184 million out of EUR 230 million needed to finance the construction of the recently ordered RoPax ferry.

The LNG-powered fast ferry is currently under construction at the Finnish Meyer Turku shipyard, and is expected to be delivered in the first quarter of 2017.

The 49,000 GT dual fuel ship will be about 212 metres in length, with a passenger capacity of 2,800. Once delivered, the new ferry will start operating between Tallinn and Helsinki.

The loan is arranged by Nordea Bank and Finnish Export Credit Agency Finnvera, and it guarantees 95 per cent of this post-delivery buyer credit for which Finnvera’s subsidiary, Finnish Export Credit Ltd, has provided long term financing.

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 on the delivery of the vessel, presumably in the beginning of 2017 and has the final maturity of twelve years from the drawdown. The loan bears OECD Commercial Interest Reference Rate (CIRR) based fixed interest rate.