A ceremony for the largest ever working capital guarantee issued by Atradius Dutch State Business – on behalf of the Dutch Government – took place on Thursday 5 April 2012 at IHC Merwede’s shipyard in Krimpen aan den IJssel. With this finance agreement in place, IHC Merwede will start work on the construction of two pipelaying vessels for its Malaysian customer SapuraCrest.
The ships are part of a recent offshore order worth €450 million and will install flexible pipelines in Brazilian waters, where large quantities of oil have been discovered. The delivery dates for the vessels, which will be built in The Netherlands, have been set for May and August 2014 respectively.
IHC Merwede has signed a working capital finance facility of €200 million with its bank consortium, formed by ABN AMRO, BNP Paribas, Deutsche Bank, ING and Rabobank. The banks are providing the capital because Atradius Dutch State Business covers the repayment risk through a working capital guarantee in the main. The facility will be used by IHC Merwede to cover the construction costs.
The guarantee has been developed after close cooperation with the Dutch Ministries of Finance and Economic Affairs, Agriculture and Innovation, banks and exporting business. The overall aim is to promote the provision of working capital to Dutch capital goods exporters, so that they can have access to the required financial resources. Since the introduction of this facility in 2010, hundreds of millions of euros have been provided as coverage. The SapuraCrest order is the largest financing facility covered by a Dutch State working capital guarantee.
“We are delighted to have received this huge order in recognition of IHC Merwede being a supplier of high-quality technological vessels and equipment,” says IHC Merwede’s President Govert Hamers. “Apart from the technology at our disposal, being able to offer a financial package was decisive in securing this sale. We are proud of this achievement, along with Atradius our banks and SapuraCrest.”
“The funding of this important transaction came about thanks to the joint efforts of IHC Merwede, its banks and Atradius,” says Johan Schrijver, the CEO of Atradius Dutch State Business . “Our coverage has made a competitive financing package possible, and due to this, the order has been awarded to a Dutch company. This puts our country on the map as an export nation.”
[mappress] Subsea World News Staff , April 06, 2012; Image: IHC Merwede