Marine Link
Sunday, September 25, 2016

Navig8 Inks Sale and Leaseback Deal with SBI

Courtesy Navig8 Chemical Tankers

Navig8 Chemical Tankers Inc. an international shipping company focused on the transportation of chemicals, today announced that it has entered into a sale and leaseback transaction with subsidiaries of Japan-based SBI Holdings Inc (“SBI”) for two 25,000 DWT stainless steel chemical tankers (the “Vessels”) being built by Kitanihon Shipbuilding Co. Ltd (“Kitanihon”). Crédit Agricole Corporate and Investment Bank (“CA-CIB”) is providing debt financing to SBI in connection with the transaction.

German Banks Count Cost of Global Shipping Crisis

Photo: Hanjin Shipping

German banks are struggling to recoup tens of billions of dollars of loans as a global shipping industry slump hits them hard. The lenders - among the biggest backers of shipowners over the past 20 years - are behind up to a quarter of the world's $400 billion of outstanding shipping loans, three shipping financiers told Reuters. This would make them collectively more exposed than banks from any other single country in terms of outstanding debt to the sector. These institutions…

Matson Closes $200 Mln Debt Private Placement

Matson, Inc. announced the issuance of $200 million in privately placed 15-year final maturity senior unsecured notes pursuant to a previously announced commitment letter on July 18, 2016. The notes will have a weighted average life of approximately 8.5 years and will bear interest at a rate of 3.14 percent, payable semiannually. Matson said it plans to proceeds from the notes to pay down the its revolving credit facility and for general corporate purposes. Joel Wine, Matson's Senior Vice President and Chief Financial Officer commented, “We are pleased to complete this attractive fixed rate financing that will pay down our revolving credit facility and strengthen our balance sheet as we progress with our four vessel Hawaii fleet renewal program.

Sovcomflot $ 1.26 bln Debt Financing Complete

Courtesy SCF Group

SCF Group completed a series of financing transactions in the total amount of USD 1.26 billion. The deals include USD 750 million of unsecured public debt and USD 512 million of bank loans raised for purposes of funding the fleet renewal and expansion programme and for the refinancing of maturing debt. The latest in this series were new long-term credit facilities for a total amount of USD 252 million signed in August 2016, with a number of international banks including: Citibank; DVB Bank; ING Bank; Nordea Bank and Unicredit Bank.

Singapore: Committee to Plan Future of International Maritime Center

IMC 2030 Advisory committee members with SMS Josephine Teo, Senior Minister of State Prime Minister's Office, Ministry of Foreign Affairs & Ministry of Transport. Photo: Maritime and Port Authority of Singapore

The Maritime and Port Authority of Singapore (MPA) has established the International Maritime Center 2030 (IMC 2030) Advisory Committee to chart the future directions of Singapore’s IMC. Andreas Sohmen-Pao, Chairman of BW Group, has been appointed as the Chairman of this committee. As part of its work, the committee would review Singapore’s IMC development strategy and identify new growth areas to enhance Singapore’s long-term competitiveness and value proposition as an IMC. Globally, Singapore is known as one of the world’s busiest ports and a top bunkering port.

Two Buyers Eye Struggling STX France Shipyard

(Photo: STX France)

Two potential buyers have emerged for STX France, a shipyard subsidiary of the struggling South Korean group STX Corp, according to a French finance ministry source. The French state holds a 33 percent minority stake in STX France, which runs a naval shipyards in Saint Nazaire on the west coast. Lossmaking STX Corp is in administration. A French finance ministry source said a South Korean court was poised to clear a decision to liquidiate STX Corp's assets on Friday this week, a move that could clear the way for the sale of its assets.

Finland Funds Autonomous Ship Research

Image: Tekes

The Finnish government's innovation investment arm, Tekes, said that it is making a multi-year commitment to funding collaborative research and development of autonomous, unmanned ships to ply the world’s oceans in the not-so-distant future. Tekes said in a statement that this research area is a priority for the Finnish government and would contribute to the nation's competitiveness. "Digitalization has a strong role in the development of the competitiveness of the Finnish maritime cluster.

Cargotec Begins Interschalt Restructuring

Photo: Cargotec Oyj

Cargotec is to begin restructuring at maritime software provider Interschalt, following its acquisition of the company earlier this year. The re-organisation is estimated to affect Interschalt personnel in Germany, USA (Houston) and China (Shanghai). It is estimated that some Interschalt's production and design work will be discontinued or outsourced and some Interschalt locations will be closed. Cooperation negotiations have started at Interschalt and they will affect tens of employees. Interschalt employs at the moment 223 persons.

Fincantieri, CSSC Ink Chinese Cruise Ship Deal

Courtesy Fincantieri

During the 11th annual “China Cruise Shipping and International Cruise Expo”, which started today in Tianjin, Fincantieri and China State Shipbuilding Corporation (CSSC), signed a non-binding agreement with Carnival Corporation and CIC Capital Corporation (CIC Capital) for the construction of the first new cruise ships to be built in China for the Chinese market. The understanding is subject to several conditions, including the closing of the joint venture and the financing. As envisaged by the agreement…

India Proposes New MCA for Port Sector

Nitin Gadkari, Union Minister of Road Transport & Highways and Shipping. Photo: Official FB Page

India's Shipping Ministry on Thursday proposed a new model concession agreement (MCA) to attract more private sector investments in the development of port infrastructure. The proposed MCA will replace the existing agreement which came into existence in January 2008. "The proposed MCA has taken into account the suggestions provided in various reports by Member Planning Commission (2010), Indian Ports Association (IPA-2015) and Kelkar Committee Report (2015)," says a press release from the Ministry.

China COSCO Shipping Not to Hike Freight Rates

Photo: China COSCO Shipping

China COSCO Shipping will not raise its shipping prices as it had planned, reports Caixin quoting shipping agency representatives at Shanghai’s port. The shipping giant has given up its plan to take advantage of Hanjin Shipping’s bankruptcy by raising prices after a surge of international cargo prices turned out to be temporary, says the report. The shipping market witnessed a spike in prices in the first few days after Hanjin filed for court receivership on Aug. 31. One container shipped from China to the western coast of the United States…

Global Trade Set To Benefit From ICC Report

Released yesterday, the International Chamber of Commerce (ICC) Trade Register Report 2014 provides empirical evidence that, in all forms, trade and export finance is a low risk bank financing technique – further supporting ICC’s advocacy of trade finance as a strong contribution to economic recovery and growth. This evidence has the potential to alter attitudes towards trade finance, and therefore contribute to the growth of both global trade and the global economy. Based on data contributed by the major global commercial banks and reflecting more than 4.5 million transactions totalling an exposure in excess of US$2.4 trillion, the ICC Trade Register Report 2014 (“the Trade Register”) empirically demonstrates that trade finance is lower risk than many other types of financing and assets.

SMM Hamburg Ready for a New Beginning

At the SMM Ship Finance Forum just ahead of SMM, the leading international maritime trade fair hamburg, experts will discuss the potential and prospects for new ship financing models. In spite of low newbuilding prices, the total number of ship orders is declining around the world. Financing difficulties are part of the problem, and new concepts are in demand to revitalise the market. "In ship finance we have to address two separate issues: On the one hand, we need to put the fleet in service on a more solid financial basis. After a five-year double crisis – one affecting the financial, the other the shipping markets – that may be a tall order. On the other hand we need to finance new tonnage to be commissioned over the next few years.

Financing Structure for Canal Expansion Program

Panamanian President Martín Torrijos announced the final financing structure for the historic Panama Canal Expansion Program. Five major multilateral agencies from Europe, Asia and offered to finance the Canal expansion project. The Panama Canal Authority, after months of extensive negotiations, has accepted the banks’ offers. The $2.3 billion financing package will cover a portion of the $5.25 billion total cost of the project. Financing agencies are the European Investment Bank (EIB)…

Mercury Marine Launches Repower Financing

Randy Caruana

Mercury Marine launched a new repower finance program that aims to make it easier for consumers to get the engine performance they want with flexible financing for a broad range of buyers. The Mercury Repower Finance program is funded by Medallion Bank, a marine industry leader that specializes in accepting buyers with a wide range of credit histories. Program administration is handled by Brunswick Financial Services, a fully owned subsidiary of Brunswick Corporation, the worldwide marine manufacturing leader.

Golar Acquires Financing for GoFLNG

Golar LNG

Golar LNG Limited announced today that it has received an underwritten financing commitment for its first GoFLNG project from CSSC (Hong Kong) Shipping Co. Ltd ("CSSCL") in relation to a conversion financing and sale and leaseback transaction for the GoFLNG Hilli. The financing structure will fund up to 80% of the project cost and will be split into two phases. The first phase enables Golar to drawdown up to $700m from the facility to fund the ongoing conversion cost, once Golar…

Golar Receives Financing Commitment for GoFLNG Hilli

Golar LNG Limited has received an underwritten financing commitment for its first GoFLNG project from CSSC (Hong Kong) Shipping Co. Ltd (CSSCL) in relation to a conversion financing and sale and leaseback transaction for the GoFLNG Hilli, the company announced today. The financing structure will fund up to 80 percent of the project cost and will be split into two phases. The first phase enables Golar to drawdown up to $700 million from the facility to fund the ongoing conversion cost, once Golar has spent $400 million of the estimated $1.2 billion conversion cost and the tolling contract with Perenco and SNH have been ratified by the Cameroon government, expected during the third quarter of 2015.

Signet Closes $209m Financing Facility

Wells Fargo Equipment Finance, through its Energy and Marine and Capital Markets Groups, acting in the capacity of lead arranger, closed a $209 million financing facility today for Signet Maritime Corporation, a global marine transportation company based in Houston. The new facility refinances Signet’s existing bank debt and provides acquisition financing for the purchase of Harvey Gulf International Marine’s ocean towing vessel (OTV) fleet, which includes eight OTVs. Signet will also use proceeds of the financing facility to complete the construction and purchase of three newbuild escort ASD reverse tractor tugs, and the purchase of three existing bareboat chartered vessels.

SMM Finance Forum: ‘Banks are Lending Again’

Dr. Carsten Wiebers

For Dr. Carsten Wiebers, Global Head of Maritime Industries at KfW IPEX-Bank, and member of the SMM Advisory Board, innovative financing solutions are key to Europe's continued international competitiveness in maritime high technology. On September 8, 2014, or SMM Finance Day, the SMM Ship Finance Forum will be held for the second time in conjunction with international maritime trade fair SMM. The forum, which will answer questions revolving around financing solutions for global shipbuilding and shipping, will be subdivided into three overarching topics.

Laborde Marine Get Necessary Finance for Expansion

GE Capital, Corporate Finance has announced that it provided US$22.5-million in equipment financing to Laborde Marine. The funds refinance existing debt used to purchase five new crew boats. Founded in 1995 and headquartered in New Orleans, LA, Laborde Marine is a privately held supplier that provides marine support to the offshore oil and gas industry internationally. They operate more than 20 vessels in the U.S. Gulf of Mexico and have two international offices in Brazil. “GE Capital delivered the financing we need to fund the ongoing expansion of our fleet and customer base,” said Cliffe Laborde, managing member of Laborde Marine.

Front Vanguard Contract Terminated

VLCC Front Vanguard Photo Ship Finance

Frontline Ltd. ("Frontline" or the "Company") has agreed with Ship Finance International Limited ("Ship Finance") to terminate the long term charter for the 1998 built VLCC Front Vanguard. Ship Finance has simultaneously sold the vessel to an unrelated third party. We expect the vessel to cease operating as a conventional tanker and the charter with Ship Finance is expected to terminate in the second quarter of 2016. Frontline has agreed a compensation payment to Ship Finance of approximately $0.4 million for the termination of the current charter.

ADNL, NPCC Ink $110m Vessel Deal

 The Abu Dhabi National Leasing Company (ADNL) has signed a $110m deal with the National Petroleum Construction Company (NPCC) for financing the construction and lease of its new vessel. The proposed financing structure is a two-plus-five year finance lease to partially finance one new Derrick Lay Ship DLS-4200 for NPCC.    (Source: Khaleej Times)  

RBS Says Starts Winding Down Shipping Business

The Royal Bank of Scotland has begun winding down its global shipping finance business, it said on Tuesday, ending efforts to sell it amid a worsening downturn across the freight industry. Chief Executive Ross McEwan is battling to complete a restructuring, which includes asset sales and thousands of job cuts, amid a low-interest rate environment that makes finding profitable new business tough. "In line with the bank's strategy to create a simpler, stronger, and more sustainable bank, better aligned to the needs of our customers in the UK and Western Europe, we are commencing the wind down of our shipping business," an RBS spokesperson said.

 

Maritime Reporter Magazine Cover Sep 2016 - Maritime & Ship Security

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