Export Import Bank of China (CExim) is guaranteeing CSSC-Fincantieri Cruise Industry Development Co Ltd to the tune of EUR 33m ($38m) to back its acquisition of rights to shipbuilding technology.
The deal involves the design technology behind the series of Vista-class 133,000-gt cruiseships to be built for Carnival Cruise Line at Shanghai Waigaoqiao Shipbuilding (SWS) by Fincantieri in collaboration with the China State Shipbuilding Corp (CSSC) owned yard. The project was announced last September and under a memorandum of understanding signed in February, the deal includes two firm ships and four options, worth around $4.5bn.
The exact cost to the joint venture of acquiring the Fincantieri technology is not disclosed in a CSSC stock exchange filing, but under a letter of credit issued by the bank, the joint venture will not pay more than the EUR 33m figure.
The joint venture is 60% owned by an SWS subsidiary with EUR 84m invested in its 60% stake and Fincantieri with EUR 56m invested in the remaining 40%.
