Bank Debt Returns to Normalcy?

One of the major concerns on the minds of many would be the pile of toxic collateralized mortgage paper that remains on banks’ balance sheets and this will continue to restrict the banks’ ability to extend new credit. Likewise, shipping banks face the same tricky task of valuing the shipping assets on their books based on current market prices. Basel II requires banks to set aside more capital to riskier assets whenever the security cover reduces, and this could potentially limit capital for lending. The process of writing down book values has yet taken place and moving forward, it is absolutely crucial that bank losses on shipping remain limited or the industry could risk losing a number of lenders. There has already been a material contraction in ship lending capacity among major shipping banks.

2009 has been a busy year for the ship financiers, not so much for lending but more in terms of restructuring and workouts. Lending terms as one would expect have become more stringent in 2009 and not only has the advance rate been lowered to 50-60%, banks prefer shorter tenors between 3 and 5 years. This is in stark contrast to the 10 to 12 year tenors banks were offering shipowners during the shipping boom just a couple of years back. Bankers call this a return to basics. Continue Reading

Written by: carisk | Categories: Asia, Debt, Loan | December 31st, 2009 | Add a Comment

MISC secures USD 100 Million For Offshore Project

Following the announcement that it has clinched a contract for the lease of 2 mobile offshore production units, MISC’s subsidiary Malaysian Offshore Mobile Production (Labuan) has completed a USD 110 million seven year project financing with mandated lead arrangers ABN AMRO, ANZ, ING Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corporation. Continue Reading

Written by: carisk | Categories: Asia, Bank Debt | November 19th, 2009 | Add a Comment

Bumi Armada Completes USD 190 Million Fundraising

Armada Oyo has secured a five-year USD 190 million limited recourse loan facility with a club of seven mandated lead arrangers for an FPSO currently undergoing conversion and owned by its parent Bumi Armada Berhad. The loan will finance around 75% of the project cost, and remarkably was oversubscribed by more than the total project amount. Final commitments came through in springtime, with closure just in August.

SMBC acted as structuring bank, documentation bank and SACE coordinator on behalf of the team of mandated lead arrangers, which in addition to SMBC comprised Banca UBAE S.P.a., Australian and New Zealand Banking Group Limited (ANZ), ABN AMRO Bank N.V., WestLB A.G., Malayan Banking Berhad (Maybank), and Standard Chartered Bank. Watson, Farley & Williams advised Bumi Armada on the legal aspects of the transaction. Continue Reading

Written by: carisk | Categories: Asia, Bank Debt | September 10th, 2009 | Add a Comment

Watson, Farley & Williams LLP Advises in High Profile KOGAS Project Financing

The Singapore office of Watson, Farley & Williams LLP (“WFW”) advised on the high profile Korea Gas Corporation (“KOGAS”) refinancing for three 1999 built LNG carriers. The 138,200 cbm built LNG carrier “Hanjin Muscat” is on bareboat charter to Hanjin Shipping Co., Ltd, the 138,100 cbm built LNG carrier “SK Summit” is on bareboat charter to SK Shipping Co., Ltd. and the 135,000 cbm built LNG carrier “Hyundai Technopia” is on bareboat charter to Hyundai Merchant Marine Co., Ltd. All three LNG carriers are operating under long term contracts of affreightment with KOGAS. Continue Reading

Written by: carisk | Categories: Asia, Bank Debt, Debt | August 13th, 2009 | Add a Comment

Kanasashi Heavy Industries Files for Creditor Protection

Financially troubled Japanese shipbuilder Kanasashi Heavy Industries (“Kanasashi”) told creditors in a closed-door meeting that it will carry on with the construction of five newbuildings. The medium sized shipbuilder has filed for creditor protection with the Shizuoka District Court two weeks ago after failing to secure more funds from its bankers. Kanasashi, which has a 25-ship orderbook including 33,000 dwt bulk carriers ordered by Hong Kong based Uni-Asia Finance (“Uni-Asia”), Denmark’s ID Shipping and J Lauritzen, used to specialise in fishing boats but ventured into the construction of larger sized cargo ships in the past few years. Continue Reading

Written by: carisk | Categories: Asia, Restructuring | April 23rd, 2009 | Add a Comment

Let the Bankers Speak

Marine Money hosted its 2nd Annual Hong Kong Ship Finance and Investment forum yesterday with the theme “Navigating Rough Waters: Survival Today, Success Tomorrow”. The seminar brought together over 140 participants to discuss the critical issues faced by the shipping industry today. We will be providing more coverage in the next edition but in the meantime, we bring you the highlights from the bankers’ roundtable.

Panel participants:

Nora Huvane, Director, Marine Money Asia

Mr. Charles Reineke, SVP, Global Shipping Finance Group, SMBC

Mr. Terence Yiu, Managing Director, Asia Shipping Division, BNP Paribas

Mr. Felix Ulbricht, Head of Deutsche Shipping Asia, Deutsche Bank

Mr. Paul Chang, Head of Shipping Asia, HSH Nordbank Continue Reading

Written by: carisk | Categories: Asia, Bank Debt | March 26th, 2009 | Add a Comment

Euronav & OSG Credit Facility

On Monday, OSG and Euronav jointly announced a $500 million senior secured loan to finance the acquisition of TI Asia and TI Africa, both built in 2002, by joint venture companies equally owned by Euronav and OSG and the conversion of the ships into FSO service vessels. The vessels are scheduled to deliver to Maersk Oil Qatar on the Al Shaheen field offshore Qatar and start operations respectively in July and September 2009.
Continue Reading

Written by: carisk | Categories: Freshly Minted, The Week in Review | October 16th, 2008 | Add a Comment

Back to the Future – Genco’s New Credit Facility

On Monday, Genco Shipping & Trading announced it had received a bank commitment for a new $320 million senior secured amortizing term loan facility. Underwritten by Nordea Bank Finland Plc, Bayerische Hypo- und Vereinsbank AG, Sumitomo Mitsui Banking Corporation and DnB NOR Bank ASA, the five year facility is subject to definitive documentation.

Written by: carisk | Categories: Freshly Minted, Loan, The Week in Review | August 21st, 2008 | Add a Comment

Marine Money Conferences Span the Globe

One of our central beliefs is that every nation has a maritime industry, some are larger than others, but the fact is the movement of goods by water either internationally or coastwise is fundamental to economic growth. The other central belief is that ships, like any big- ticket wasting asset, will always need competitive capital sources. So we take enormous pride in bringing these two powerful forces, capital and shipping, together, around the world.

Written by: carisk | Categories: Conferences, Freshly Minted, Market Commentary | May 8th, 2008 | Add a Comment

Marine Money Brings the Ship Finance Industry to Imabari City, Shikoku Island

We are pleased to announce that the 3rd annual Japan Ship Finance Forum will take place May 14-15 at the Imabari Kokusai Hotel in Shikoku Island. Together with our official partner Sumitomo Mitsui Banking Corporation (SMBC), we have put together a program that we believe will be of value to the local Japanese ship owners and financiers as well as foreign players looking at Japan.