Published by Global Banking & Finance Review®
Posted on January 29, 2025
1 min readLast updated: January 27, 2026
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Germany plans €4.1B guarantees to help TKMS secure a submarine deal with Argentina, involving three Type 209 submarines. Delivery is set for 2034-2035.
BERLIN (Reuters) - Germany's budget committee is expected to approve state guarantees worth up to 4.1 billion euros ($4.27 billion) to help Thyssenkrupp Marine Systems(TKMS) win an order from Argentina for three submarines, two sources in the budget committee told Reuters on Wednesday.
Several media outlets have reported that a French shipbuilder is also been in the running for the order, worth some 2.2 billion euros, which has not yet been made.
The guarantees would cover the construction and delivery of three Type 209 submarines, made by TKMS, plus replacement parts and training.
The shipyard is in direct talks with the Argentinian defence ministry, according to a budget committee document seen by Reuters. Delivery would be due in 2034 and 2035.
A prerequisite for Argentina awarding the contract to the German shipyard is the offer of credit financing on long-term payment terms. The committee is due to approve the guarantees later on Wednesday, according to the sources.
No comment was immediately available from Thyssenkrupp Marine Systems.
($1 = 0.9602 euros)
(Reporting by Holger Hansen and Tom Kaeckenhoff; Writing by Madeline Chambers)
Germany's budget committee is expected to approve state guarantees worth up to 4.1 billion euros ($4.27 billion).
The guarantees would cover the construction and delivery of three Type 209 submarines, along with replacement parts and training.
A prerequisite for Argentina awarding the contract is the offer of credit financing on long-term payment terms.
The delivery of the submarines is due in 2034 and 2035.
Several media outlets have reported that a French shipbuilder is also in the running for the order, which is worth some 2.2 billion euros.
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