KfW IPEX-Bank said it is providing approximately €786 million ($925.8 million) for the construction of Carnival Corporation’s new LNG-powered cruise ship under construction at Meyer Werft shipyard in Papenburg, Germany. 

KfW IPEX-Bank is handling the entire structuring of the financing and taking on the roles of book runner, initial mandated lead arranger (MLA), facility agent and export credit agency (ECA) agent. The plan is to syndicate up to 80 percent of the financing amount, the bank said in its statement.

The financing has a term of 12 years from the date of delivery, and is backed by export credit insurance issued by the Federal Republic of Germany (Hermes cover) and encompasses the Commercial Interest Reference Rate (CIRR) for ships, which is determined by the Organisation for Economic Co-operation and Development (OECD).

The new to be built by Meyer Werft in Papenburg features dual-fuel engine using LNG and marine diesel, and will normally run on LNG. T

The cruise ship will be able to accommodate approximately 5,200 guests (lower berths), with the delivery scheduled for May 2022.