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Icelandic consortium takes delivery of first of seven new trawlers

Four Icelandic shipping companies received loans from Export Credit Norway to invest in new boats.

The first of seven Iceland-bound trawlers from Aukra, Norway-based Vard has been delivered, with the remainder scheduled to be delivered in the second half of the year.

A consortium including shipping companies Bergur-Huginn, Skinney-Thinganes, and Gjögur ordered two trawlers each, using export financing from Export Credit Norway. The owner of the seventh vessel has secured funding elsewhere. The total cost of the trawlers is DKK 700 million (€93.7 million/$104.3 million).

Export Credit Norway offers loan financing to Norwegian and international companies that buy products and services from Norwegian exporters. They are owned by the Ministry of Trade and Industry.

The first loan will be paid to the Icelandic fishing group Bergur-Huginn on Friday this week. Bergur-Huggin entered into a consortium with the rest of the companies allowing it to cooperate on both construction and financing of the vessels.

An additional five loans, for five identical vessels, will be paid to the remaining shipowners in the coming months. The total loan amount is approximately NOK 500 million (€51.6 million/$57.4 million), with Icelandic bank Landsbankinn as the guarantor.

"Although each shipowner is responsible for financing their vessels, the consortium approach has enabled us to copy and reuse portions of the financing process. This has saved both time and energy for all parties involved," said Olav Rygg, lending director of Export Credit Norway.

"Well done by Vard Aukra to secure this valuable construction contract on seven vessels. The yard has obviously impressed the Icelandic shipowners consortium both technically and commercially."

Nordic design

The vessels, designed by Vard Design, are 29-meters long and 12-meters wide, with on-board processing operations. They are also equipped with a cold store that is 240-cubic-meters large and cabins for a crew of 13.

The vessels also have an energy-efficient propulsion system with low fuel consumption, large propellers and rudders that ensure smooth sailing in tough seas and safe handling of fishing equipment.

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