IHC Merwede Nails Down Finance Agreement

A ceremony for the largest ever working capital guarantee issued by Atradius Dutch State Business – on behalf of the Dutch Government – took place on April 5, 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 pipe-laying 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.

“We are delighted to have received this huge order in recognition of IHC Merwede being a supplier of high-quality technological vessels and equipment,” said 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.”