Bergur-Huginn Gets Finance for 6 Trawlers

Icelandic fishing company Bergur-Huginn has been issued a loan from Export Credit Norway in connection with delivery of the Vestmannaey stern trawler from Vard’s Aukra facility in Norway.

A further five loans, for five identical vessels, will be disbursed to Icelandic shipowners over the coming months.

The delivery of the Vestmannaey trawler is the first of seven identical vessels ordered from Vard’s shipyard in Aukra, Norway. The buyers are a consortium that consists of four Icelandic fishing companies. The six remaining vessels are expected to be delivered during the second half of 2019.

Export Credit Norway will provide export financing for six of the seven stern trawlers, at a total loan amount of approximately NOK 500 million, with the Icelandic bank Landsbankinn acting as guarantor for the loans.

The shipowners that will utilise financing from Export Credit Norway are Bergur-Huginn, Skinney-Thinganes, and Gjögur, who have ordered two trawlers each. The owner of the seventh vessel has secured financing elsewhere.

“Well done to Vard Aukra who has secured this valuable newbuild contract of seven vessels. The shipyard has clearly impressed the Icelandic shipowner consortium from both a technical and commercial viewpoint, and we are delighted to be able to offer competitively priced vessel financing as part of the deal,” says Olav E. Rygg, director of lending at Export Credit Norway.

The initiator behind the major order was Icelandic fishing company Bergur-Huginn, who was already familiar with the quality of fishing vessels built by Vard Aukra as well as financing options from Export Credit Norway.

Subsequently, Bergur-Huginn contacted other Icelandic fishing companies to enterinto a consortium that could cooperate with regards to building the vessels and secure financing of them.