Eureka Shipping secures $32M loan for three ECO cement carriers

March 2, 2022, by Naida Hakirevic Prevljak

Germany’s bank KfW IPEX-Bank is providing a €29 million (about $32 million) loan for the financing of three 4,250 dwt ECO cement carrier newbuildings for Cyprus-based shipping company Eureka Shipping.

The vessels are currently being built at the Royal Bodewes shipyard in the Netherlands and are scheduled for delivery in 2022 and 2023.

As explained, the three vessels will replace older vessels in the fleet and provide clients with environmentally friendly transport services for cementitious cargoes.

The new vessels will significantly reduce CO2 emissions per ton carried and enable efficient operations and lower fuel consumption both at sea and in port. The vessels engines can burn biofuel and will in the future be able to switch to green methanol after making a limited additional investment, according to KfW IPEX.

Other improvements with environmental impact include an optimised hull design, propeller nozzle, slick anti-fouling hull paint, LED lighting, water-lubricated stern tube bearings and noise reduction measures. Additionally, some of the vessels can operate on shore power for loading and unloading — cold ironing, thereby eliminating emissions and reducing noise during their stay in port.

“Eureka Shipping is very pleased to be able to renew and expand our fleet of cement vessels… with these new additions we will be able to meet increased customer demand for cement transport in Europe. We can do that in the most efficient and safe manner,“ Kai Grotterud, Managing Director of Eureka Shipping, commented.

“In order to support the transformation process towards sustainable economic and ecological development, we finance in particular future technologies that contribute to reducing global emissions,” Andreas Ufer, member of the Management Board of KfW IPEX-Bank, said.

“We are very pleased about our new customer Eureka Shipping, which, like us, is actively committed to the environment and sustainability and is helping to make shipping “greener” in this segment as well.”

The financing has a tenor of 12 years and is covered by an export credit guarantee from the Dutch export credit agency (ECA) Atradius.

Eureka Shipping owns and commercially operates ships in the size range of 3,000 dwt to 23,000 dwt and transports a variety of powdery and cementitious cargoes.

The company was founded in 2008 and today is a joint venture between SMT Shipping and CSL Group.