KfW IPEX-Bank is providing € 30 million to finance two new feeder container vessels for Greenland's Royal Arctic Line.
The financing is backed by cover from the Spanish export credit insurer CESCE and includes funds from the Spanish Commercial Interest Reference Rate (CIRR).
The newbuild container vessels, which replace older ships, are scheduled for delivery in 2020, when they will be used to transport cargo to remote towns and settlements along the Greenlandic coast that are not connected by land.
The vessels will help ensure supplies to the island's population in the far north during most of the year.
Andreas Ufer, member of the management board of KfW IPEX-Bank, said: “We are pleased that our financing will support our long-standing and valued customer Royal Arctic Line with its fleet renewal plan. At the same time, we are contributing to supplying the Greenlandic population and to modernising the maritime infrastructure in the European North Sea.”
Within KfW Group, KfW IPEX-Bank is responsible for international project and export finance. It offers medium and long-term financing to support key export industries, to develop economic and social infrastructure, to fund environmental and climate protection projects and to secure the supply of raw materials.