Fjord1 Agrees New Loan, Gets Ferry Services Deal in Norway
- Business & Finance
Norwegian transportation company Fjord1 has secured a new loan agreement with compatriot shipping bank DNB and Finnish Nordea Bank.
The facility, which was agreed in October 2018, is for NOK 1,283 million (USD 150.6 million) with a guarantee from Norwegian Guarantee Institute for Export Credits GIEK for NOK 900 million (USD 105.7 million).
Additionally, the company was awarded a new ferry connection contract in Indre Sunnmøre, Norway. The agreement, expected to be signed in November, is for a duration of 14 years, starting from 2020 until the end of 2033.
Under the agreement, the company would utilize ten of its vessels to operate on the Eidsdal-Linge, Stranda-Liabygda, Hundeidvik-Festøy and Sæbø-Leknes-Standal-Trandal routes. The deal has a total value of NOK 2 billion (USD 234.5 million).
The contract comes a month after Fjord1 signed a deal to operate four ferry connections in Romsdal, namely Sølsnes-Åfarnes, Molde-Sekken, Solholmen-Mordalsvågen and Aukra-Hollingsholm. The earlier signed agreement, which has a value of NOK 2.26 billion (USD 265 million), would see Fjord1 deploy five vessels on the aforementioned routes.
The Romsdal contract is also for a period of 14 years, scheduled to start from 2020, with the contract for the Sølsnes-Åfarnes service expected to take affect from 2022.