Government funded retrofit finance

The Norwegian export credit agency Export Credit Norway has assembled a specialised team and tailor-made financing solution to support vessel owners who need to retrofit equipment such as gas exhaust cleaning systems, ballast water treatment systems and new coating systems.

Analyses show that as many as 60,000 vessels worldwide will need to retrofit scrubber systems by 2020 and ballast water treatment systems by 2021.

“Money is tight and access to reasonably priced capital is a challenge for many players in the international shipping and maritime industries at the moment. Hence, attractive financing of retrofit equipment could make the investment less demanding for many vessel owners,” said Olav Einar Rygg, Export Credit Norway’s Director of Lending, Ocean Industries.

Export Credit Norway can finance up to 85 percent of the contract value for retrofit equipment that international vessel owners acquire from Norwegian companies. Norwegian content must account for minimum 30 percent of the amount of the Norwegian supplier contracts.

For ship owners that have several vessels that need to retrofit equipment, Export Credit Norway can offer a credit frame agreement for the entire fleet.

Norwegian shipping companies may also apply for financing of retrofits at Norwegian shipyards, provided that the vessel will be engaged in foreign trade or generate its revenue in the offshore market.

Ship owners or equipment suppliers must apply for export financing before the commercial contract is signed.

By Jake Frith