Ship Finance for Chinese Owners

The following is an abbreviated version of a speech written and delivered by Henry Chen, Director of Seagos Company, Inc. , at a private ship finance seminar in Hong Kong hosted by Marine Money, Seagos, Marsoft Capital and Nedship Bank. Seagos, based in Stamford, CT, represents Chinese shipowners who operate in the Atlantic and North America. As more Chinese shipping companies have started seeking financing from Western banks and financial institutions, Seagos has been drawn into the role of helping clients locate competitive sources of capital. In the following speech, Mr. Chen focuses on some of the obstacles Chinese owners face in securing financing.

There is no question that a tremendous amount of capital is needed to sustain the growth in the Asia Pacific region, and in China in particular. Capital is needed for the build-up of infrastructure, terminals, gas storage tanks, coal burning power plants, etc. Ship financing is extremely capital intensive, and shipping companies must compete with toll roads, bridges, etc. for sources of financing. However, ship financing is sometimes assessed as high risk, and financiers are very selective about which projects they should invest in. What can we do to facilitate the selection of ship financing projects that are beneficial to both the shipping companies and the financial institutions? What services do we at Seagos need to provide to our shipowning clients to help them secure competitive financing for their projects?

This is only an excerpt of Ship Finance for Chinese Owners

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