KfW IPEX Bank funds for Siem newbuildsCompany News // February 3, 2015
KfW IPEX Bank has co-arranged financing for well intervention vessels for Siem Offshore’s subsidiary Siem Offshore Rederi AS.
The vessels are to be built by Flensburger Schiffbau-Gesellschaft (FSG) and are scheduled to be delivered in February and July 2016. For the shipyard, this order is another step towards expanding its range of products and services in the offshore specialist vessels segment. It is also safeguarding jobs in Flensburg. In addition to ordering the vessels, Siem Industries, which is the largest shareholder in Siem Offshore, has taken over FSG as the new owner.
"This contract shows that high-quality specialist vessels from Germany are in demand around the world," said Christian K Murach, Member of the Board of Directors of KfW IPEX-Bank, when signing the contract. "We are delighted that Siem Offshore has commissioned FSG with this order, enabling it to build its reputation in the promising offshore market."
KfW IPEX-Bank as Mandated Lead Arranger is providing 50 per cent of the pre- and post-delivery financing of up to US$350 million. It is covered by export credit insurance from the government (Hermes cover) and includes the shipping CIRR (Commercial Interest Reference Rate) determined by the OECD.
Within the transaction, KfW IPEX-Bank is acting as the Euler Hermes and CIRR agent and also as the documentation bank. The term is 12 years from delivery.
The vessels have already been chartered to the US offshore specialist Helix Energy Solutions for seven years after their delivery.