Finland. Meyer Turku Oy
| Date of agreement: | 27 Jun 2022 |
|---|---|
| Country: | Finland |
| Customer: | Meyer Turku Oy |
| Amount in EUR: | EUR 100 million |
| Maturity: | 2 years |
Project
NIB has joined the increased and extended EUR 1,056 million construction financing facility with the Finnish shipyard company Meyer Turku Oy (Meyer) with a EUR 100 million participation. The financing facility is lead by Commerzbank AG.
NIB’s loan will support the company’s COVID-19 related recovery process. In order to manage the large order stock built up during 2015 and 2016, Meyer Turku made substantial investments at the shipyard in 2015-2019. However, due to the COVID-19 outbreak, the company needed to decrease the capacity and postpone some of the planned investments.
The Covid outbreak in early 2020 had a major impact on the cruise industry, resulting in a 75% decrease in passenger volumes. Although the Meyer Turku or Meyer group orders were not cancelled because of Covid, the existing orders were stretched over a longer time period. Consequently, the postponements resulted in unsynchronised cash flows.
The shipyard in Turku is important for the Finnish marine cluster directly and indirectly through subcontractors that are mostly Finland-based companies.
The borrower, Meyer Turku Oy, is family-owned by the Meyer family, and one of the leading European shipbuilding companies. Meyer Turku shipyard is specialised in the construction of very demanding, innovative, and environmentally efficient cruise ships. Meyer Turku operates the Turku shipyard in Finland, where vessels have been built since 1737.
Fulfilment of NIB's mandate
The loan allows NIB to fulfil its role in supporting member countries and businesses during the crisis caused by the COVID-19 pandemic.
Sustainability summary
The loan aims to support Mayer Turku’s operations disruptions due to the COVID-19 pandemic. As such, a sustainability review is not applicable.
