Export Finance and Insurance Corporation (EFIC) has provided a multi-million dollar construction finance facility to support Incat Tasmania’s ship building contract with South American company, Buquebus. 50% of the finance is guaranteed by Australia and New Zealand Banking Group Limited (ANZ).
EFIC is the Australian Government’s export credit agency that helps exporters grow their business in overseas markets.
The construction finance facility will be used by Incat to fund the construction of the world’s first dual fuel, high speed passenger catamaran capable of operating on either LNG or diesel. The 99-metre high speed ferry will have a capacity of 1,000 passengers and 158 cars, and is due for delivery in October 2012. Buquebus will operate the vessel on their River Plate service between Buenos Aires, Argentina and Montevideo in Uruguay.
Incat sought support from EFIC and ANZ for additional capital to construct the ship for its South American customer.
According to EFIC’s Executive Director, Origination and Portfolio Management, Peter Field, EFIC worked with Incat’s bank, ANZ to provide a construction finance facility that will enable Incat to deliver on the contract after recognising the innovative product, the contract size and the benefits of having this world-first vessel constructed locally in Hobart, Tasmania.
Incat’s Chairman, Robert Clifford says that the ship represents a significant step in the global move for natural gas powered ships to replace those operated with less environment-friendly fuels. He adds that it is the 8th Incat vessel built for Buquebus and the 6th such vessel supported by EFIC.
Paul Richards, Head of Structured Export Finance, ANZ is pleased to be able to work with EFIC to help Incat deliver on this contract. EFIC’s partnership with ANZ has allowed Incat’s debt requirement to be met in a way that has delivered a great outcome for all parties involved.