Genting signs financing deal for US$1. 6 billion for two newbuilds
By
Rebecca Gibson |
Genting Hong Kong (GHK) has signed a financing agreement for the construction of two new Star Cruises vessels, which are to be built at the Meyer Werft yard in Germany and enter service in 2016 and 2017.
The two loan facilities provide an aggregate financing up to US$1.6 billion (or the equivalent of €1.2 billion) and each loan has a term of 12 years from the delivery of the vessel.
In April GHK announced that KfW IPEX-Bank had structured the overall financing and will provide the entire loan amount, together with Crédit Agricole Corporate and Investment Bank and the Singapore branch of DNB Bank ASA. The finance agreement has been backed by export credit insurance issued by the German Federal Government (covered by Euler Hermes) and encompasses the commercial interest reference rate for ships.
“Purpose-built for the Asian market, the two new cruise ships will reinforce Star Cruises’ leading position in the Asia-Pacific and our commitment to develop the region as an international cruise destination,” said Tan Sri Lim Kok Thay, chairman and CEO of GHK. “We are pleased to have secured financing from key banks that share our vision and we are grateful for their staunch support.”
Ordered in October 2013 and scheduled for delivery in the fourth quarter of 2016, Star Cruises’ new 150,000 gt vessel will have more than 1,600 passenger cabins and 18 decks. At around 330-metres in length, the ship will be the line’s largest ship, increasing its fleet to eight. It will also be one of the biggest Asia-base cruise ships.
Star Cruises has also commissioned Meyer Werft to construct a sister ship to the newbuild, which is to enter service in the fourth quarter of 2017.