Royal IHC signed a new guarantee and financing arrangement on 3 June 2025, replacing the previous Senior Facilities Agreement (SFA). It includes the continuation of the guarantee facility for the Boskalis dredger currently under construction for € 208 million.
The transaction was successfully closed on 5 June 2025. The arrangement also includes guarantee facilities for a total of € 250 million in support of Royal IHC’s business.
This represents a continuation of the guarantee volume, which was available under the previous SFA. In addition, the new financing includes € 50 million in loan facilities and a € 40 million standby facility.
Royal IHC will reveal more details on the arrangement in its 2024 Annual Report, which is yet to be made available.
Also read: Royal IHC to build Beaver dredgers at Vahali in Serbia
Restructuring and refinancing
The company has had a difficult couple of years in which the Dutch government had to come to its rescue. Since then, a number of reorganisations have taken place reducing the workforce from 3100 FTE to 1700 FTE. Subsidiary IQIP was sold to strengthen the company’s cash flow. In addition, HAL Investments provided refinancing of the company.
In the 2023 annual report, IHC stated: ‘Reflecting on 2023, Royal IHC has navigated a year of strategic transformation, reinforcing its commitment to core sectors and achieving financial stability. The successful restructuring, including the divestment of IQIP and the securing of financial support from HAL Investments, has positioned Royal IHC for further recovery and future growth.’
Also read: Boskalis and IHC ink deal for 31,000 m3 dredger
New building strategy
After the summer of 2023, IHC experienced restored confidence from customers, leading to Boskalis’ major order of a 31,000-m3 hopper dredger. Order intake increased further after that.
This was followed by a major change of strategy, as Royal IHC decided to move towards a two-pillar building strategy. Shipbuilding for projects with short lead times, highly complex vessels or naval customers now take place in the Netherlands. Projects for commercial clients with lower risks and/or longer lead times are moved abroad. For this purpose, shipyards in Vietnam and Serbia have been selected, and the first shipbuilding contract in this new strategy was concluded in spring 2024.
Picture by Royal IHC.
Also read: Shipbuilder Royal IHC sells IQIP to HAL
