The European Investment Bank (EIB) has awarded its first ever green shipping initiative loan to Irish owner ICG.
The EUR 155m ($176m) facility will part-fund two new ro-paxes for the Dublin group, which runs Irish Ferries.
This is also the EIB's first ever loan to ICG.
The green initiative supports bids to to reduce emissions and improve fuel efficiency.
ICG's 1,885-passenger newbuilding W.B.Yeats, which has just entered service, incorporates emissions scrubber technology to reduce sulphur oxide pollution and ballast water systems which meet current and known future environmental regulations and will deliver optimal fuel consumption and efficiencies.
EIB provided EUR 75m for this vessel.
The cash is also being used to fund a second newbuilding - a 1,800-passenger ship due from Flensburger in Germany next year.
Eamonn Rothwell, CEO of ICG, said: "Significant new investment is essential to expand the Irish Ferries fleet and better serve our customers increased demand for passenger and freight transport.
"The EUR 155m financing facilities agreed with the EIB, alongside financing from leading Irish and international banks, for the two new cruise ferry ships demonstrates the EIB's commitment to support transformational corporate investment such as this in Ireland, enabling ICG to deliver on its growth strategy and strengthening the tourism and cargo trading links in and out of the country."
Andrew McDowell, European Investment Bank vice president, added: "The first approval of financing under the EIB's green shipping initiative reflects firm commitment of ICG to cut emissions and improve fuel efficiency.
"Increasing maritime transport capacity reflects increased demand arising from Ireland's export driven recovery and the potential need for flexibility in the event of disruption on UK routes."
