German lender KfW IPEX-Bank is financing the fourth and fifth Quantum-class cruise ships ordered by Royal Caribbean Cruises Ltd. from the Meyer Werft shipyard in Papenburg.
KfW IPEX-Bank has taken on the structuring of the overall financing for Royal Caribbean and secured the order for the Meyer Werft with its commitment covering the entire loan. A considerable portion will be syndicated, i.e. the project will be financed together with an international banking consortium.
The financing has a term of 12 years from delivery. It is backed by German export credit insurance (Euler Hermes) and includes the Commercial Interest Reference Rate (CIRR) for ships, which is determined by the OECD.
The new Quantum-class ships are now the 14th and 15th cruise liners that KfW IPEX-Bank, Meyer Werft and Royal Caribbean have joined forces to create.
“With large-volume financing transactions as required in cruise shipping, we greatly appreciate the support provided by a proven industry expert with structuring expertise such as KfW IPEX-Bank,” said Jason Liberty, Chief Financial Officer of Royal Caribbean.
The sister ships Quantum of the Seas and Anthem of the Seas, which were delivered in autumn 2014 and spring 2015, respectively, can each accommodate more than 4,000 passengers. The third vessel in the family – the Ovation of the Seas – is currently being built in Papenburg and is set to be finished in spring 2016. The fleet will grow by the fourth Quantum-class ship in spring 2019 and the fifth from autumn 2020.
Royal Caribbean Cruises Ltd. is the second-largest cruise company in the world, with six brands operating a total of 44 ships and an additional 11 on order that serve approximately 480 destinations across all continents.