Royal Caribbean Covers Last Hurdle in Oasis Financing

Financing is now completed on Royal Caribbean’s newest vessel, Oasis of the Seas. Finnish credit agency, Finnerva has made the commitment to guarantee the last remaining amount of financing for Royal Caribbean’s newest ship, Oasis of the Seas.

Three Europeans banks, SEB, Nordea Bank and BNP Paribas have all committed to contributing 20% each toward the sizeable $1.05 billion dollars that is required for Royal Caribbean to take delivery of the largest cruise ship ever to sail, the Oasis of the Seas. That still left 40% yet to be paid, and Finnerva stepped in to not only guarantee the loans up to 95% but also to supply the remaining funds. The amounts constitute 80% of the cruise ship’s total cost.

Never before in cruise history has a government agency such as Finnerva provided actual financing as well as guaranteeing loans. Perhaps a hint to the reason is that Finland is the home of the shipbuilder where the Oasis is being construction and is seen as a major employer of the country. The groundbreaking design of the ship matches the groundbreaking events surrounding the financing efforts.

Delivery of the fantastic cruise ship is scheduled to take place in November, 2009, so such an announcement could not have come soon enough for Royal Caribbean. Specific loan details are not being disclosed at this time, with Royal Caribbean saying simply that they have the option of choosing a floating or fixed rate of interest but not the interest rate itself. The three banks have the opportunity to opt out after 6 years.

With the financing behind them, Royal Caribbean has already begun launching their advertising campaign to intrigue the population about what it takes to bring such a revolutionary ship to completion. The ship’s website, www.oasisoftheseas.com will offer weekly “webisodes” that feature a behind the scenes glimpse of the ship’s progress. The website will also bring to readers the “Chairman’s Blog” by the Chairman and CEO of Royal Caribbean, Richard Fain, copies of each and every press release concerning the Oasis of the Seas, resolution images and interactive tools.

While no mention of the sister ship, Allure of the Seas, has been made, it seems there will be smooth sailing ahead for the Oasis of the Seas.