Penningtons Manches Cooper acts on financing and delivery of Eimskip’s largest container vessel

Posted: 05/05/2020

Leading Icelandic transportation and logistics company Eimskip has taken delivery of Dettifoss, the first of two new 2,150 TEU container vessels built in China and now the largest vessel in the company’s fleet.

Partner Grant Eldred and associate Ellis van der Vos assisted Eimskip in relation to the delivery of the vessel, built at Guangzhou Wenchong Shipyard in partnership with China Ship Trading Company, as well as the financing arrangements with German bank KfW IPEX-Bank Gmbh and ECA backed financing from Chinese insurer Sinosure. 

Despite the ongoing disruption caused by the coronavirus pandemic – including sea trial and delivery voyage crew having to undergo a 14 day quarantine on arrival in China – all parties worked together to achieve successful completion, and delivery of Dettifoss was successfully achieved on 29 April.

Penningtons Manches Cooper is also advising on the financing and delivery of Eimskip’s second new vessel, Bruarfoss which is scheduled to be delivered later in 2020. Together, Dettifoss and Bruarfoss will be the largest container vessels in the history of the Icelandic fleet.

The Faroe Islands flagged vessel will now begin the voyage from China to Iceland, before formally entering into service in a few weeks’ time.

The vessel has a gross tonnage over 26,000 and has been designed with ice class in accordance with the Polar Code, for the eventual trading route to Greenland, and in line with the shipping industry’s sustainability drive, has been specifically designed to lower emissions of Nitrogen Oxide, consume less fuel per container unit, and has built-in scrubbers to minimise Sulphur Oxide emissions.

Grant Eldred, partner in the banking and finance team at Penningtons Manches Cooper, said: “The international cooperation provided by all involved was key to the successful delivery of Dettifoss during an unprecedented global crisis. It was a pleasure to work with the senior team at Eimskip and support them as the company cements its position as Iceland’s foremost shipping company.”

Árni Sigurðsson of Eimskip commented: “The delivery of the vessel Dettifoss is an important milestone in Eimskip’s journey. This was a project of significant magnitude with a long period from start to finish. It made a huge difference to have an experienced partner through the project, especially in such unprecedented circumstances. The outbreak of COVID-19 and the economic downturn have highlighted the importance of having Penningtons Manches Cooper providing us the guidance and assistance to conclude the project in the middle of much uncertainty.”

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