Estonia's Tallink has signed a loan agreement worth EUR 197.6m ($222m) to finance its new LNG-powered fast ferry.

The company sealed a deal with Germany's KfW IPEX-Bank for the vessel, which is being built at Rauma Marine Constructions in Finland.

Finnish export credit agency Finnvera is guaranteeing 95% of the sum.

The loan is secured by a mortgage on the new vessel.