KfW IPEX-Bank finances ship conversion at Blohm + Voss

KfW IPEX-Bank, acting as facility agent and collectively with BNP Paribas as mandated lead arranger, finances the conversion of a former RoRo ferry into a state-of-the-art accommodation and support vessel specially designed for the offshore industry, for the Danish shipping company J. Lauritzen.

The Blohm + Voss shipyard in Hamburg has been contracted to implement this technologically demanding and complex conversion of the “MV KRAKA” to the “DAN SWIFT”.

To finance the project KfW IPEX-Bank and BNP Paribas will provide a loan in equal proportions worth a total of around USD 130 million. The financing structure includes export credit insurances from Germany (Euler Hermes) and Denmark (Eksport Kredit Fonden). The tenor of the loan is 12 years. The related loan agreement was signed today.

Christian K. Murach, responsible Managing Director of KfW IPEX-Bank, underlined the importance of the project: “A ship that was obsolete is made fit for the market again The conversion project will create a specially designed innovative vessel for which there is a stable market demand. This is yet an example of a successful response to the crisis-like developments in the shipping industry.”

Although a conversion of this kind is highly complex, it is still cheaper and quicker than building a new ship from scratch. The Blohm
+ Voss shipyard in Hamburg, which has a long tradition, specialises
in such complex and challenging contracts. The conversion works in the shipyard are already in full swing. The ship is planned to be delivered to J. Lauritzen in September 2009, and then used in the offshore oil and gas industry. It will provide accommodation for around 250 workers employed temporarily on offshore units, and will be equipped with a dynamic positioning (DP) system, as well as state of the art gangways for hook up at sea, together with deck cranes and machine shop/storage areas, which will be needed for assembly, repair and breaking up works at sea.

About KfW IPEX-Bank GmbH

Within KfW Bankengruppe KfW IPEX-Bank GmbH provides project and corporate financing as well as trade and export financing domestically and abroad. Worldwide it conducts all market activities of KfW Bankengruppe that are carried out on commercial terms. KfW IPEX-Bank GmbH has been operating as a legally independent subsidiary since 1 January 2008 and contributes significantly to the promotional mission of KfW Bankengruppe. It has approx. 490 employees (as of June 2009) and is represented in the key economic and financial centres throughout the globe.