What We Do
We provide structured financing solutions for marine and floating LNG infrastructure. Our expertise in this asset sector stems from a long history of providing financial structuring solutions for the asset sector.
- Firstly, vessels are acquired by a special purpose company (SPC) on credit, financed by equity from the shipowner and debt from a debt lender. We arrange the financing from the institutional markets for the shipping vessels.
- SPCs get the delivery of the ship from the shipbuilder.
- SPCs enter into a charter agreement with the charterer (the shipping company) and lease the vessel to the charterer on terms and conditions agreed in the charter agreement.
- The charterer is then required to pay the total amount of the charter agreement in instalments to the SPC.
- The ownership of the vessel at the end of the charter agreement depends on the terms of the charter agreement.
As part of this process, we also engage in due diligence to price the risk and to seek to secure the most competitive terms of financing available on the market. The commercial terms for the funding will be negotiated by us on our client’s behalf to protect their best interests.
Types of Charters We Finance
This charter involves hiring the vessel for a specified period. SPCs bear the risk of marine accidents along with maintenance of the vessel and the crew while the charterer pays for the operating expenses.
This is where a charter is taken up on a voyage basis whereby an SPC manages the vessel while the charterer pays the operating expenses along with the costs for the crew.
These involve the transfer of risk and return of the vessel to a charterer. Hence, at the end of the agreement, the charterer takes full control of the vessel, including legal and financial responsibilities for it.
This charter is a type of bareboat charter with a longer duration. Demise chartering is common for tankers and bulk carriers.