Edda Wind has agreed a green term loan agreement for pre- and post-delivery financing of four new operating vessels.
Company Edda Wind has released the news that it has entered into a long-term green financing agreement to support the construction and delivery of four new operating ships commissioning service systems (CSOV) that are being built at Vard. This agreement represents a sustainable investment of €161 million from a credit line provided by Crédit Agricole Corporate and Investment Bank, Danske Bank A/S, DNB Bank ASA and SpareBank 1 SR-Bank ASA, maturing in 2029 and with a term of 12 years. The mechanism corresponds to a leverage ratio of 60% of the total cost of ships ready for sea, reinforcing the company's commitment to environmentally friendly financing.
Green Financing: Sustainable Partnership with Group of Lenders
We are pleased to secure another loan mechanism attractive green for our new construction construction program. Edda Wind is grateful for the support of a group of world-class lenders committed to the offshore wind industry, and pleased that we have further expanded our banking group, preparing us for the journey ahead. Following this agreement, 13 of the 14 vessels in our fleet have obtained long-term financing and we expect to finalize the debt financing of the remaining vessel in 2024, once we reach the relevant milestones of the shipyard. With this installation, Edda Wind has raised over €400 million in capital during 2023 for our new build program,' says Kenneth Walland, CEO of Edda Wind.
Green Financing: Expansion and Efficiency in Construction
The first two ships are expected to be delivered in first quarter 2025, the third in the second quarter of 2025 and the fourth in the first quarter of 2026.
Shipbuilding Abroad Finances vessels Industry news Offshore wind Activity
The company Edda Wind celebrates another green financing achievement, this time through a group of creditors committed to environmental sustainability. The secured green loan facility further strengthens the company's newbuilding construction program, solidifying its commitment to the offshore wind industry. With this sustainable partnership, Edda Wind secures long-term financing for 13 of the 14 ships in its fleet, establishing an important step for the company's future. The aim is to finalize the financing of the last ship by 2024, after reaching the shipyard's relevant milestones.
Furthermore, Edda Wind has raised more than €400 million in capital during 2023 for its new construction program, consolidating its presence in the renewable energy sector. The expectation is to deliver the first two ships in the first quarter of 2025, the third in the second quarter of 2025 and the fourth in the first quarter of 2026, showing solid and efficient planning to achieve its expansion objectives. This is another important milestone for the company, which continues to expand its operations in a sustainable and environmentally friendly way.
These advances demonstrate Edda Wind's commitment to green and sustainable financing, reflecting the importance of environmentally friendly investments in the shipping industry. The company stands out by ensuring green financing for its fleet, boosting sustainable shipbuilding and contributing to the development of environmentally friendly vessels. With the addition of this new green lending mechanism, Edda Wind reinforces its position as a leader in the offshore wind sector, promoting sustainable activity and economic growth aligned with responsible environmental practices. The company continues its path towards a greener and more promising future.
