Australia: EFIC to Finance Incat in Construction of World’s First LNG Passenger Ferry

Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, has provided a multi-million dollar construction finance facility, 50% of which is guaranteed by Australia and New Zealand Banking Group Limited (ANZ), to support Incat Tasmania’s (Incat) ship building contract with South American company, Buquebus.

The facility will be used by Incat to finance the construction of the world’s first dual fuel, high speed passenger catamaran capable of operating on either LNG or diesel. Incat sought support from EFIC and ANZ for additional capital to construct the ship for its South American customer.

“Recognising the innovative product, the contract size and the benefits of having this world-first vessel constructed locally in Hobart, Tasmania, EFIC worked with Incat’s bank, ANZ, to provide a construction finance facility that will enable Incat to deliver on the contract,” said EFIC’s Executive Director, Origination and Portfolio Management, Peter Field.

“This ship represents a significant step in the global move for natural gas powered ships to replace those operated with less environmentally friendly fuels, and we are very pleased to have the support of EFIC and ANZ,” said Incat’s Chairman, Robert Clifford. “This is the eighth Incat vessel built for Buquebus and the sixth such vessel supported by EFIC.”

“We are pleased to be able to work with EFIC to support Incat, a long-term client, deliver on this contract. EFIC’s partnership with ANZ has allowed Incat’s debt requirement to be met in a way that has delivered a great outcome for all parties involved,” said Paul Richards, Head of Structured Export Finance, ANZ.

The 99 metre high speed ferry will have capacity for 1,000 passengers and 158 cars and is due for delivery in October 2012. Buquebus will operate the vessel on their River Plate service between Buenos Aires, Argentina and Montevideo in Uruguay.

Incat provides optimal lightweight ship solutions for ferry operators, special service providers and militaries. From fast flexible and efficient vehicle-passenger ferries to high-speed military support vessels, crew ships and dynamic platforms, Incat places emphasis on eco operations and fuel efficiency.

Incat’s shipyard is on Prince of Wales Bay at Derwent Park near Hobart, Tasmania, Australia. The facility incorporates more than 70,000 m2 of undercover production halls, with two dry-dock areas capable of accommodating up to six vessels under construction. A reputation for quality and excellence in production is supported by an experienced and dedicated workforce.

Export Finance and Insurance Corporation, EFIC provides finance and insurance solutions to help Australian exporters overcome the financial barriers they face when growing their business overseas – read more about EFIC.

(investinaustralia)

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Source: investinaustralia, July 25, 2011; Image:incat