Germany’s KfW IPEX-Bank is working with compatriot credit insurance provider Euler Hermes to provide USD186.3 million in financing Singapore-based LPG trading house Petredec for the building of four 21,000 m³ LPG carriers.
There is a German component in the deal, as German-made gas and tank systems will be installed in the ships.
The parts, worth EUR50.4 million (USD56.4 million), are from TGE Marine.
Petredec finance chief Mike Abbott commented, “KfW IPEX-Bank offered us a convincing overall financing package based on an innovative structuring idea. We are pleased to work with the German specialist financier as well as the German exporter who will contribute its technical expertise to the project. Both play an essential part in helping us expand our ship fleet, which is important to us.”
KfW IPEX-Bank’s global head of maritime industries, Carsten Wiebers, said the bank arranged partial coverage for German equipment supplies where the shipowner is not a direct but indirect buyer of the components.
“By providing complementary financing, we are supporting the German exporter TGE Marine, a member of the German Maritime Export Initiative, to sell cutting-edge technology made in Germany,” said Wiebers.
The bank said the four ships will be built at an Asian shipyard.
IHS Maritime’s Sea-web.com data show Petredec has four such ships on order at Shanghai Jiangnan Changxing Heavy Industry. The ships, which can carry LPG, ethane, ethylene, and other gasified petrochemicals, were ordered in May 2014.
The ships, named Empery, Ellington, Emilius, and Earth Summit, would be delivered in September and November 2016 and February and May in 2017.
Petredec buys more than 10 million tonnes of LPG annually from more than 70 different sources for trading.