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SHIP FINANCE: NEW STRATEGIES FOR A NEW ERA IN LENDING 200 DELEGATES HEAR VIEWS AT SEA ASIA FINANCE SESSION TODAY
Wednesday April 22, 2009
How the credit crunch is affecting the availability and cost of ship financing was the main theme of this afternoon’s session today at Sea Asia 2009, the region’s leading maritime show and conference taking place in Singapore (April 21-23).
One revelation in the ship finance session was the changing landscape of traditional ship financiers in terms of the amounts currently being loaned to shipowners.
It was noted that out of the top 30 banks in global ship finance on lending portfolio in 2008, 16 had dropped out in the first quarter of 2009 and been replaced by banks which had previously been low-profile in the sector.
This was pointed out by Paul Chang, head of shipping (Asia) and chief representative, Hong Kong representative office, HSH Nordbank AG.
Dagfinn Lunde, a managing director at DVB Bank SE, said there was still money available from banks for ship finance and added, “If you have the words ‘energy’ or ‘offshore’ in your project, even some US banks are still willing to lend.”
Mr Chang supported this view and added that new banks emerging in ship finance were increasingly attracted to the shipping arena and to ship finance, particularly banks in the Asia region. He added that national shipping lines still had fewer problems securing finance from their own national banks, noting as a key example the close relationship between Taiwan banks and Taiwanese owners.
Philip Clausius, President and CEO of FSL Trust Management, a Singapore-based listed shipping trust, advised, “Develop your relationships with Asian banks – every Asia-based borrower needs to achieve a balance between Western and Asian banks. As many Asian banks do not yet have as much experience in this sector, be patient and take small, slow steps.”
He added that FSL now mixed its borrowing for ship finance 50-50 between western banks and banks based in Asia, and that “this is working well for us.”
Session chairman Harald Serck-Hanssen, the global head of shipping, offshore and logistics at DnB NOR bank, called on bankers to devise a new formula which gave borrowers (shipowners) the thing they needed most: certainty.
The finance session was one of several high-profile speaker sessions today at Sea Asia 2009. Other sessions at the event included Emissions & Ballast Water and Shipbuilding & Ship Conversion, both of which were part of a technical programme organised by the Association of Singapore Marine Industries (ASMI), the Society of Naval Architects and Marine Engineers Singapore (SNAMES), the Singapore Joint Branch of the Institute of Marine Engineers, Scientists and Technologists (IMarEST) and the Royal Institution of Naval Architects (RINA).
Tomorrow (Thursday April 23), sees Sea Asia 2009 enter its final day. The highlights include four sessions: a Charterers’ Forum, The Crewing Challenge, The Power of Communication, LNG Shipping and Marine Insurance.
ENDS
ABOUT SEATRADE
For over 30 years, Seatrade has been a leading maritime publisher and international events organiser. Headaquartered in UK, Seatrade publishes Seatrade magazine and Seatrade Cruise Review plus bespoke supplements.
Seatrade’s family of conferences and exhibitions has grown in strength and number over the years. Its signature exhibition and conference event in this region, SEA ASIA (co-organised with the Singapore Maritime Foundation), takes place once every two years.
With an increasing presence in Asia, Seatrade opened a Representative Office in Singapore in 2006.For more information about Seatrade’s evolving portfolio of publications and events, visit www.seatrade-global.com.
ABOUT SMF
The Singapore Maritime Foundation is a private sector-led organisation established to develop and promote Singapore as an International Maritime Centre (IMC).
Established in 2004, the Foundation seeks to work in partnership with the different sectors of the maritime industry to advance the maritime interests of Singapore through collaborations and events. Some of the notable projects include the inaugural collaboration with Seatrade, Sea Asia, the iconic maritime event which has received overwhelming response from the industry players, both in Singapore and overseas, the MaritimeONE (Outreach Network) an initiative that seeks to heighten awareness of the maritime industry, the maritime professionals, the exciting career opportunities and boost recruitment into this booming industry. For details, visit www.smf.com.sg
For more information, please contact Helix Media, public relations consultants to Seatrade for SEA ASIA 2009.
Edward Ion: +65 6294 8500
Mobile: +65 9111 6871
Email: edward.ion@helixmedia.asia
Website: www.helixmedia.asia
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