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Superyacht: fund your dream

Do something out of the ordinary and buy a Superyacht. Owning a yacht says much about your love of the sea, your quest for freedom, your need to plan big, and your desire to share precious moments with your loved ones. Choosing the right partner for its financing is key to success and peace of mind.

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More than 5,300 superyachts
are crossing the waves

what about yours?

The COVID-19 pandemic has not spared the yachting industrial in general. Early 2020 brought a sharp fall in new and second-hand superyacht sales, but these picked up in late 2020 and approached record levels in Q2 2021. By the beginning of August, 5,325 superyachts (> 30 m long) were on the water.

One of the reasons for this strong rebound also relates to the pandemic: “The situation inspired many clients to look for a safe solution to overcome travel restrictions. People who were thinking about buying a superyacht maybe took the plunge sooner than expected.”

This trend could be amplified if the world experiences other similar crises. Spending lockdown out at sea for several weeks may not be such a crazy idea.

Source: Superyacht Times, Monaco Yachtshow Market Report 2021

Who are BIL’s clients?

“Loan applications also reach us through our partnership network, and we are seeing an increase in requests from people living in Europe, though not exclusively. There is also growing interest from people living in Asia; in the Middle East and Russia it has been stable.”

+300/year

Sales of second-hand superyachts
(generally observed)

Superyacht finance:
a matter of trust, and more

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Financing a superyacht is not something you do every day. But for your chosen partner, it should be. First and foremost, you expect this partner to be strong and reliable, and have lengthy experience of yacht finance.

Beyond the financial aspect, though, a superyacht is above all a matter of passion, love of the sea, and much more besides. So it’s quite natural that you would look for a specialist who understands or even shares this passion.

Banque Internationale à Luxembourg is one of those special partners. BIL has been helping existing and future superyacht owners with their financing for a decade, given its standing as a systemic bank in Luxembourg, its ability to tackle complex cross-border issues, its agility – the result of its independence and a fairly short decision-making process – and its pool of superyacht experts who share this passion and are ready to help you realise your dream.

+ 15 years

serving superyacht owners
 

up to 40/year

superyacht financing applications
studied

Label Luxembourg Label numéro 1

The only bank in Luxembourg to finance superyachts

The Luxembourg Maritime Act was enacted in 1990 and since a review in 2005/2006 with an implementation of a number of measures proposed by the “roundtable of the maritime sector, BIL has taken pride in developing a bespoke yacht finance offering. Close relations quickly formed with the Commissariat aux Affaires Maritimes (CAM) and with nautical companies, enabling BIL to help numerous private clients buy their superyacht.

Today, the bank accepts all the quality foreign flags, such as Malta, British and Red Ensign flags (Cayman Islands, Isle of Man), Marshall Islands, etc.

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Climb aboard and take
advantage of our expertise

When a future client knocks on BIL’s door with a superyacht finance plan, we know what this means. We provide a team of superyacht experts ready to support you wherever necessary until completion of the purchase and drawdown of the loan.

Your first contact will be with a BIL Wealth Management specialist who is used to working with shipbuilders, brokers and other stakeholders of the international yachting sector, and who loves sailing.

You’ll discuss your plans, what drives you, what you expect from BIL. “Have you already chosen your yacht? Will you use it only personally or are you thinking about making it available for charter? To pay for it, do you want to buy it with your own funds and then refinance? In a deep and open conversation, answering these questions will enable me to help set up the appropriate structure.” (Guy Huss, SuperYachting Pool, Wealth Management Senior Business Development Manager)

Through its maritime network, BIL is regularly aware of forthcoming yacht buying/selling transactions and can arrange introductions.

You’ll discuss your plans, what drives you, what you expect from BIL. BIL has spent years forging relations with different stakeholders around the world in the sailing industry. We can share the benefits with you.

Characteristics of superyachts financed by BIL

  • Superyachts measuring at least 25 m with technical specifications allowing for a commercial flag registration
  • Age of the superyacht: Up to 15 years at the end of the loan schedule, with exceptions relating to the yacht brand and technical condition
  • Leading brand or yard with industry recognition (mainly European builders)
  • Construction meeting Maritime & Coastguard Agency or equivalent standards, authorised by classification companies

Once the foundations of your plan have been laid, we will put you in touch with all the other experts from our SuperYachting pool, which includes credit structuring, legal and wealth structuring specialists, to come up with the financing solution that’s perfect for you and your future vessel. “We also work with external specialists such as maritime law firms for contractual aspects. When considering your future superyacht, for example, we use our internal expertise but also call on an independent firm to get a second opinion, which we compare with our own.” (Nicola Capelletti, SuperYachting Pool, Wealth Management Senior Credit Structurer)

Our financing proposal will reflect your passion and desires, and fit within your financial constraints.
It will have to be approved by our lending and investment committee. BIL is an independent bank that is not linked to a parent company in another country. This committee sits in Luxembourg, close to the experts from our SuperYachting pool.

So you can tell yourself that your dream will become a reality.

Terms of a loan from BIL

  • Maximum LTV (Loan To Value): to be determined as a function to the yacht features
  • Multi currency financing (EUR, USD)
  • Amortisation: linear over the full loan tenor, with possibility of a balloon payment of a maximum amount equal to the cover value of the pledged financial instruments AuM with BIL

Security

First preferred ship mortgage, using an SPV ownership company

  • Mandatory pledge of fully paid and subscribed shares
  • Cash reserve
  • Joint and several guarantees(s) from UBO
  • Assignment of Insurance policies
  • Assignment of charter fees, if any

Experts

Whether you’ve already decided to buy a superyacht or you’re just thinking about it, contact our superyacht experts to discuss it.