Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, said it has entered into credit agreements for the financing of the first and second “Project Icon” ships for Royal Caribbean International, which are scheduled for delivery in the second quarters of 2022 and 2024, respectively.

“Each agreement makes available to Royal Caribbean Cruises Ltd. an unsecured US dollar-denominated term loan, the substantial majority of which is to be guaranteed 100% by Finnvera plc (“Finnvera”), the official export credit agency of Finland. Euler Hermes (“Hermes”), the official German export credit agency, has also agreed to provide a 95% guarantee of a smaller portion of the financing,” the company said in a statement.

 The ceiling for the cost of Icon 1 vessel was put at €1.65 billion.

The maximum amount of each facility is equal to the US dollar equivalent of 80% of the vessel purchase price plus 100% of the guarantee premiums payable to Finnvera and Hermes.

Each loan, once funded, will amortise semi-annually and will mature 12 years following the delivery of the applicable ship. Approximately 75% of each loan will accrue interest at a fixed rate of 3.56%, in the case of the first Project Icon vessel, and 3.76%, in the case of the second Project Icon vessel.

The balance of each loan will accrue interest at a floating rate ranging from LIBOR plus 1.10% to LIBOR plus 1.15%, in the case of the first Project Icon vessel, and from LIBOR plus 1.15% to LIBOR plus 1.20%, in the case of the second Project Icon vessel.

RCCL also has entered into an agreement to amend and restate its current $1.15 billion unsecured revolving credit facility. The amendment extends the termination date until October 2022.

“Under the amended facility, advances currently bear interest at LIBOR plus a margin of 1.175%. In addition, we are subject to a facility fee currently equal to 0.20% per annum of the total commitments. Under the amended facility, we have the ability to increase the capacity of the facility by an additional $500 million from time to time subject to the receipt of additional or increased lender commitments,” RCCL said.