zoomIllustration; Image Courtesy: Royal Caribbean

Miami-based cruise company Royal Caribbean International has entered into credit agreements for the financing of the first and second Project Icon ships.

Under the deals, signed on October 11, 2017, Royal Caribbean Cruises is granted an unsecured US dollar-denominated term loan, the substantial majority of which is to be guaranteed 100% by the official export credit agency of Finland, Finnvera plc.

Euler Hermes, the official German export credit agency, has also agreed to provide a 95% guarantee of a smaller portion of the financing.

The maximum amount of each facility is equal to the US dollar equivalent of 80% of the vessel purchase price plus 100% of the guarantee premiums payable to Finnvera and Hermes, Royal Caribbean said.

Each loan, once funded, will amortize semi-annually and will mature twelve years following the delivery of the applicable ship. Some 75% of each loan will accrue interest at a fixed rate of 3.56%, in the case of the first Project Icon vessel, and 3.76%, in the case of the second Project Icon vessel.

The new 200,000 gross ton ships, which would be constructed by Finnish shipbuilder Meyer Turku, are scheduled for delivery in the second quarters of 2022 and 2024, respectively.

Royal Caribbean earlier said that these vessel will mark the beginning of a new generation of liquefied natural gas (LNG) powered cruise ships and introduce the use of fuel cell technology.

Additionally, the company has entered into an agreement to amend and restate its current USD 1.15 billion unsecured revolving credit facility. Signed on October 12, the amendment extends the termination date until October 2022.