Norway-based offshore construction company Cecon, biggest client of Canada’s Davie Yards, has secured the $200 million in export credits from the Canadian government that’ll let them build three offshore construction ships in scenic Quebec City.

The Export Development Canada credit sheet covers the yard’s expenses until the ships can be delivered. After that, and with cash from their clients in hand, Cecon will see the loan convert to a 12-year term.

“The ... EDC facility will effectively replace Cecon's USD$ 200 million senior secured credit facility with DnB NOR Bank (cancelled on Jan. 19th, 2009),” Norway-based Cecon chief exec Terje Tellfesen said in a statement.

With the market for offshore construction vessels still booming — fed by wind, wind’s projected sub-sea grid and subsea oil and gas — Cecon will hurry to fill out its loan documentation by early March.

Meanwhile, the ships are being delayed to January; May and July 2010, and cost increases totalling US$23 million have been accepted by Cecon.

But the cost increase was handsomely covered by Canadian officials, and Davie Yards Inc. in the interim got a USD$20 million loan from EDC to get going on the Cecon vessels. The funding was included in Cecon’s $200 million.

“The Canadian government and EDC have been very supportive and expeditious in developing a possible financing alternative for Cecon,” Tellfesen was quoted as saying.

A range of Norwegian yard, ship’s gear and financial interests, as well as 71 percent owner Davies Holding of Norway are understood to have direct or indirect ownership in Davies.

Tags: Cecon, Davies Yards