Export Credit Norway finances Icelandic trawler series
Export Credit Norway is providing financing for six of the series of seven new trawlers under construction at Vard for Icelandic owners. Image: VARD/Kjell Stian Brunes

Export Credit Norway finances Icelandic trawler series

Icelandic fishing company Bergur-Huginn has today been provided with a loan from Export Credit Norway following the delivery of new trawler Vestmannaey from Vard’s Aukra shipyard. A further five loans, for five identical vessels, will be disbursed to Icelandic shipowners over the coming months.

The delivery of Vestmannaey is the first of seven identical vessels ordered from Vard. The buyers are a consortium 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 NoK500 million, with Icelandic bank Landsbankinn acting as guarantor for the loans.
Fishing companies Bergur-Huginn, Skinney-Thinganes and Gjögur, each of which has ordered two trawlers, will take advantage of the Export Credit Norway facility. The owner of the seventh vessel, Útgerðarfélag Akureyringa, 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,’ said Olav E. Rygg, director of lending at Export Credit Norway, which is wholly owned by the Norwegian Ministry of Trade and Fisheries.
The initiator behind the major order was Icelandic fishing company Bergur-Huginn, which 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 enter into a consortium that could co-operate in building and securing finance for the vessels.
‘To build a series of seven identical vessels has obvious advantages with regards to reducing both cost and project execution risk. Although each shipowner is responsible for the financing of their own vessels, the consortium approach has allowed us to copy & paste parts of the financing process, which has saved both time and energy for all parties involved,’ Olav E. Rygg said.

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