KfW Ipex-Bank finances second Star Cruises newbuild

Left to right: Kenneth Lam (Credit Agricole Corporate and Investment Bank), Aida Welker (KfW IPEX-Bank), Heah Sieu Lay (Genting Hongkong), Tan Sri Lim Kok Thay, (Chairman and CEO, Genting Hongkong), Hui Lim (Genting Hongkong), Ambrose Lam (Genting Hongkong), Vidar Anderson (DNB Bank ASA Singapore Branch)

JUNE 5, 2014 — With a loan of over EUR 600 million, Germany’s KfW IPEX-Bank is financing the construction of a second cruise ship for Star Cruises at Meyer Werft shipyard in Papenburg, Germany. The signing ceremony of the corresponding contracts was held in Hong Kong today. This second new vessel is scheduled for delivery during the fourth quarter of 2017. KfW IPEX-Bank closed the financing for Star Cruises’ first new vessel (a sister ship) in April this year.

KfW IPEX-Bank has taken on the structuring of the overall financing and is providing the entire loan amount together with Crédit Agricole Corporate and Investment Bank and the Singapore branch of DNB Bank ASA. The financing is backed by export credit insurance provided by Germany (Euler Hermes cover) and encompasses the Commercial Interest Reference Rate (CIRR) for ships, which is set by the OECD.

“We are pleased that we are able to provide financing for a second cruise ship and thereby further cement our long-standing collaboration with our valued business partners, Meyer Werft shipyard and Star Cruises,” said  KfW IPEX-Bank Management Board member Christian K. Murach. “As one of the world’s leading players in ship financing, this enables us to strengthen our position on the market and support German exporters and northern Germany as a shipbuilding location at the same time.”

Like its sister ship, this second new vessel has a gross tonnage of about 150,000. With more than 1,600 passenger cabins and a length of approximately 330 m.

Star Cruises is wholly-owned by Genting Hong Kong Limited.

KfW IPEX-Bank is responsible for international project and export finance. Its function is to provide financing to boost the German and European economy. It offers medium- and long-term financing to support key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects.