Cruise ships a beacon for Germany's KfW

Hamburg

THE call of the Caribbean is proving irresistible for Germany's KfW Ipex, the development bank that funds the shipbuilding industry.

After lending 1.1 billion euros (S$1.7 billion) to finance pleasure ships last year, including part of the funding for two new Royal Caribbean Cruises Ltd vessels built in Germany, KfW Ipex is preparing to fund yet more cruise liners, earmarking a total 2.8 billion euros in new shipping loans this year. More than half of its 16 billion-euro maritime loan book is now devoted to cruise ships.