KfW IPEX-Bank Finances Two More Royal Arctic Line’s Ships

Germany’s lender KfW IPEX-Bank is providing EUR 16.43 million (USD 18.6 million) to Greenland’s Royal Arctic Line A/S to finance two additional transport vessels.

Image Courtesy: Royal Arctic Line/Havyard

The new vessels will be built at the Nodosa shipyard in Spain, with a significant portion of the components sourced from Germany.

Securing this industrial suppliers’ portion took place primarily in cooperation with the German Maritime Export Initiative (GeMaX), according to KfW IPEX-Bank.

As informed, the financing is covered by insurance from the Spanish state export credit insurer CESCE and avails of the fixed rate funding offered by the Spanish Commercial Interest Reference Rate (CIRR).

The vessels are designed for year-round operation so as to supply the inhabitants of remote settlements along the Greenland coast that are not connected to each other by land.

The 36-meter-long vessels will have onboard cranes, highest ice class and refrigerated container connections for transporting deep-frozen fish for export. They will also meet the requirements of the New Polar Code, which came into force in 2017.

In November 2018, the bank also concluded a pre- and post-delivery financing for two similar vessels for Royal Arctic Line. The ships are being built at the Zamakona shipyard in Spain.

“We are delighted to be able to continue reliably to finance and secure the fleet renewal for Royal Arctic Line… We thereby not only contribute to supplying the Greenland population, but also to modernising the maritime infrastructure of the North Sea,” Andreas Ufer, a Member of the Management Board of KfW IPEX-Bank, commented.

With delivery at the end of 2020 and 2021 respectively, these newbuild transport vessels will replace older ships in the Royal Arctic Line fleet.