November 28, 2000
Kværner concludes cruise ship financing
Kvaerner has concluded a $590 million financing arrangement with Scotia Capital and Skandinaviska Enskilda Banken for the construction of cruise ships at its Masa-Yards in Finland.
The financing arrangement will cover up to 60% of the working capital needed for the order reserve at the yards. It takes the form of an off balance sheet securitization of the yards receivables.
"Together with normal contractual prepayment from customers," says Kværner, "this arrangement will substantially provide the working capital of the yard."
The securitisation facility covers six ships to be constructed over the next three years.
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