KfW IPEX-Bank finances two ferry newbuildings for Scandlines

Wednesday, 19. May 2010

KfW IPEX-Bank will finance two state-of-the-art RoPax ferries which will be built by the German shipyard Volkswerft Stralsund for the German-Danish ferry operator Scandlines.

The newbuildings are not only very important for the utilisation of the Volkswerft Stralsund shipyard's capacities. The shipyard group also regards this order as one of the most important milestones for developing new technical challenges. Financing the activities of German shipyards is a core business area of KfW IPEX-Bank.

The financing comprises around 75% of the order value and benefits from an ECA cover by Euler-Hermes. The loan term is 12 years. The transaction will be refinanced through the German CIRR (Commercial Interest Reference Rate) scheme for ship financings.

The new ferries can carry up to 1,500 passengers and 90 lorries or 460 cars. They are scheduled to operate on the traditional route between Rostock, Germany and Gedser, Denmark from mid-2012 to replace the ferries currently in operation and to double the capacity of the route. The ferries can take vehicles on two decks, so that embarkation and disembarkation will take a maximum of 15 minutes despite the doubling of capacity. They also have much lower emissions and are more energy-efficient than their predecessors while providing passengers with a substantially higher level of service and comfort.

About KfW IPEX-Bank GmbH
Within KfW Bankengruppe KfW IPEX-Bank is in charge of international project and export finance. It is responsible for providing financing to support the German and European economy, a task derived from the legal mandate assigned to KfW Bankengruppe. Its prime focus is on medium and long-term lending to boost the export economy, develop economic and social infrastructure and support environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling the promotional mission of KfW Bankengruppe. It has approx. 490 employees (as of May 2010) and is represented in the key economic and financial centres around the globe.

About Scandlines
Scandlines was founded in 1998 and is one of the largest ferry companies in Europe. Scandlines' core business is transportation of passengers and goods in the triangle between Denmark, Germany and Sweden, as well as on routes to the Baltic States and to Finland. Scandlines sails with 12 million passengers, 2.7 million cars, as well as 0.7 million trucks and trailers per year, and the prime mission is to provide efficient, reliable and competitive transportation.

KfW IPEX-Bank, press release