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Commercial banks cough up N$5.6 billion for Debmarine’s newest Vessel

Commercial banks cough up N$5.6 billion for Debmarine’s newest Vessel

Zorena Jantze

IN what is being dubbed as the single largest investment into marine mining vessel funding, Debmarine Namibia has acquired a total of N$5.6 billion to finance the building of its latest marine mining vessel, the AMV3.

DONE DEAL: The CEO of Debmarine Namibia, Otto Shikongo, flanked by several of the CEOs of the funding Banks. Photo: Zorena Jantze

The funding was procured from 5 commercial banks, namely, Standard Bank, Bank Windhoek, Ned Bank , RMB Namibia, and Absa Bank.

Speaking at the signing ceremony, CEO of Debmarine Namibia, Otto Shikongo, stated that the combined contribution of the commercial banks makes up N$5.6 or 80% of the total AMV3 acquisition.

The remaining balance, N$1.4 billion or 20%, will be covered by Debmarine.

He added that the new ship will produce 500 000 carats per annum, an increase of 35% of Debmarines current production.

Shikongo added that the project is also estimated to contribute N$2 billion per annum in taxes and royalties to the Namibian treasury; however, considerations will be made as Debmarine has to pay back the loan during the same period.

Although he remained tight lipped on the modalities on the financing agreement, Ned Bank CEO, Karl Stefan Altman, stated that it would take an estimated period of between 5 to 10 years to repay the loan granted for the building of AMV3 marine mining vessel, adding that interest rate payments will be “dependent on currency fluctuation”.

The construction of the AMV3 has already commenced in Romania and is expected to start operations in the year 2022.

It will be registered at the port of Luderitz.

 

 

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