Edda Wind lines up green term loan for CSOV quartet

New Edda Wind green term loan corresponds to a leverage ratio of 60% of the ready-for-sea cost of four CSOVs ordered at Vard. [Image: Vard]

Haugesund, Norway, headquartered Edda Wind ASA reports that it has secured green term loan financing for the four newbuild commissioning service operation vessels (CSOVs) that it ordered at Fincantieri’s Norwegian-based subsidiary Vard earlier this year.

The green term loan facility agreement is for the pre- and postdelivery financing of the four vessels under construction at Vard.

The EUR 161 million (about $176 million) green term loan facility agreement has been reached with Crédit Agricole Corporate and Investment Bank, Danske Bank A/S, DNB Bank ASA and SpareBank 1 SR-Bank ASA.

Edda Wind says that the facility has an expiry in 2029 and a profile of 12 years and that it corresponds to a leverage ratio of 60% of the ready-for-sea cost of the vessels. At the time the four vessels were ordered (see earlier story), Edda Wind said that their price was EUR 63 million (about $67 million) per ship, exclusive of owner-furnished equipment and building supervision costs and would be paid on a basis of five 20% installments.

“We are pleased to secure another attractive green loan facility for our newbuilding program,” says Edda Wind CEO Kenneth Walland. “Edda Wind is grateful for the support by a group of first-class lenders with a commitment to the offshore wind industry and pleased that the bank group is further expanded, preparing the Company for the journey ahead. Following this agreement, 13 of the 14 vessels in our fleet have secured long term financing and we expect to finalise the debt financing of the remaining vessel in 2024 once we have reached relevant yard milestones. By this facility, Edda Wind has raised in excess of EUR 400 million in capital during 2023 for our newbuilding program.”