Canadian government helps financing two flotels

Ocean Hotels in Norway has signed a $100 million loan agreement with Export Development Canada which will allow Ocean Hotels to draw up to the total amount in construction financing prior to delivery of the two 400 bed accommodation vessels.

The $40 million prefunding to Davie Yards in Canada, as announced on 24 July, is included in the $100 million loan. The signing of the loan agreement is an important milestone for Ocean Hotels and it is a fundament for the remaining financing,” Ocean Hotels CEO Ola D?nnem said.

Following delivery of the vessels, the loan will be repaid over twelve years. The loan will be secured by a first priority mortgage on the vessels under construction.

“The support from the Canadian government has been essential to ensure the continued progress of our new building programme,” said D?nnem.