Boskalis has financed its mega suction cutter dredger Krios through an innovative Export Credit Agency (ECA) covered loan. This marks the first ECA insured financing of its kind in the Netherlands. With this EUR 121 million facility, Boskalis has refinanced a substantial part of the construction costs of the ship.
The ECA covered loan under the domestic cover arrangement was introduced by the Dutch Ministry of Finance late 2019. The arrangement targets indirect export, which in Boskalis’ case is a newly built dredging vessel that will be deployed on projects outside of the Netherlands. The Krios is currently being built at Royal IHC in the Netherlands.
Long duration matches economic lifetime
The loan provided by ING and Rabobank was refinanced under a so-called CIRR (Commercial Interest Reference Rate) and is covered by Atradius Dutch State Business. The tenor of the facility is twelve years, includes linear redemption and carries an all-in financing cost of slightly less than 1 per cent. Besides the attractive all-in rate, the long duration of the facility matches extremely well with the long economic lifetime of the vessel.
Furthermore Boskalis states the new loan complements the current financing structure of the company resulting in a well-spread and long-dated profile. Besides this twelve year facility, Boskalis has USD 325 million outstanding in US Private Placements, which mature in July 2023 and has a EUR 500 million Revolving Credit Facility maturing in April 2025, currently undrawn.
The self-propelled 23,684-kW cutter dredger Krios (yard number 1277, imo 9848235) is nearing completion. The vessel started with tests in the Prinses Arianehaven (2e Maasvlakte) on 21 September and 1 day later with trials on the North Sea until 4 October. Once in operation, it will be one of the largest cutter suction dredgers in the world.
The details of the Krios are: 8981 GT, 2694 NT, 3692 DWT – L oa (pp) x B x D (d) = 152.00 (127.50) x 28.00 x 8.90 (6.00) metres. The energy is supplied by three MAN B&W main engines, type 6L48/60, 3 x 6222 kW, and a diesel generator of 2160 kW for, among others, driving the propulsion system licensed by Hyundai Electric & Energy System Co. Ltd., Ulsan, on two propellers (2 x 3500 kW at 1000 rpm) for a speed of 11.5 knots. The Krios has a total pump power of 15,600 kW and a maximum cutter power of 7000 kW. The bunker capacity is 1816 m3. Accommodation is provided for 45 persons.
The Krios has been designed for dredging at depths ranging from 6 to 35 metres up to 15 miles offshore or 20 miles from a harbour. In a swell less than 2.5 metres, the notification is unrestricted navigation. The Krios, which is virtually identical to the mega cutter suction hopper dredger Helios (yard number 1276, imo 9739197) delivered on 16 June 2017, was built under Bureau Veritas’ class.
Picture by Flying Focus.