Over the past 30 years the ship financing landscape has changed beyond all recognition, this has been especially evident in the last 10 years.
The financial crisis and subsequent shipping downturn combined with poor lending decisions led to significant non-performing loan portfolios and increased oversight, regulation and capital adequacy requirements, creating a perfect storm for traditional ship finance banks.
This has resulted in a multitude of lenders retrenching, either by exiting the business completely or scaling back their operations.
It is not all bad news though as the vacuum left has begun to be filled by a combination of alternative lenders, leasing companies – especially from China, and new or re-emerging banks.
In this presentation we will discuss the reasons that traditional banks have exited the sector, identifying significant players that have departed and those that remain.
We will also cover the new sources of finance that have come into the market in recent years, be they lessors or lenders.
Typical terms provided by lenders today will be outlined, together with what Borrowers are currently expected to provide in order to access finance.
We will conclude by attempting to provide expectations for the future development of Ship Financing with the opportunity for questions and answers