Finance Sector News

In Havila Kystruten AS v Abarca Compania de Seguros AS,¹ in which Watson Farley & Williams LLP represented the successful Norwegian shipowner, an English court has provided helpful and very detailed guidance on a number of issues relating to the parties’ rights to terminate shipbuilding contracts as well as the nature and scope of refund guarantees.BackgroundRefund guarantees are the lifeblood of shipbuilding, providing invaluable security to owners/buyers who must usually cash fund a significant proportion of the price of newbuildings during the construction phase (usually at least 40%)…

A big drag on Singapore's growth in recent years, the embattled offshore and marine industry, has broken a three-year losing streak. Yet industry executives aren't betting on a return to the glory days anytime soon.The industry, along with a top-class finance sector, has been a key pillar of Singapore's economic transformation into a first world economy since independence from British colonial rule in 1965 and a source of national pride. But a 2014 collapse in oil prices has resulted in thousands jobs lost…

Moving from smart talk to practical solutions and learning from other industries will be the twin themes of an industry event scheduled for Vancouver in March. Technology will be an enabler, but the maritime industry will have to be prepared to change its model to be a candidate for a smarter digital future. Meeting the real enterprise challenges blocking shipping’s digital journey is the focus for the Transas Global Conference 2018, whose ‘Enterprise Change’ agenda brings together global business leaders…

International law firm Watson Farley & Williams (WFW) has advised private bank Berenberg on its acquisition, jointly with a Japanese financial institution, of a circa US$460m performing shipping loan portfolio from the Royal Bank of Scotland (RBS). WFW previously advised Berenberg on the acquisition of a similar US$300m portfolio from RBS in February 2017. Hamburg-based international investment and private bank Berenberg was founded in 1590 and is the world’s oldest merchant bank and the world’s second oldest bank overall. It is especially active in pan-European equity research, brokerage and capital markets transactions, in addition to private banking for wealthy customers and institutional asset management.

Richard V. Spencer was officially sworn in as the 76th secretary of the Navy (SECNAV) August 3, at a ceremony conducted in the Pentagon by William O'Donnell, Department of the Navy administrative assistant. Spencer, a Connecticut native, graduated from Rollins College in 1976 with a Bachelor of Arts in Economics. Upon Graduation he joined the United States Marine Corps and served as an H-46 pilot until 1981 before departing active duty to enter the private finance sector. He held…

Globus Maritime Limited, a dry bulk shipping company, announced today that Dimitrios Stratikopoulos has resigned from its Board of Directors due to other recent pressing business commitments with the resignation taking effect immediately. The Board of Directors has appointed Ioannis Kazantzidis to the Board to replace  Stratikopoulos as an independent Class I, non-executive director effective today. Additionally and on the same day, Kazantzidis has been also appointed to the Company's Audit, Remuneration and Nomination Committees. Ioannis Kazantzidis has over 40 years of experience in the Information Technology Banking and Finance sector.

Bank of Ireland said it is winding down its shipping business, joining other banks looking to cut non-core lending and exposure to an industry suffering its worst downturn. Many European banks are already bogged down by a sluggish economy and face tough capital demands from regulators which are eroding profitability, leaving many looking for ways to shore up their balance sheets. Parts of the shipping industry are suffering their deepest ever downturn as international trade slows. Around 90 percent of world trade is transported by sea. "As previously stated, Bank of Ireland no longer lends within the shipping finance sector and we have been winding down the portfolio," the bank, Ireland's largest by assets, told Reuters on Tuesday.

Royal Bank of Scotland Group PLC is winding down its Greek operation and is looking to sell its USD5 billion shipping loans portfolio, Reuters reported on Saturday. Citing finance sources familiar with the plans, Reuters said the move was part of the UK state-backed bank's efforts to shrink its international business. Part of a wider strategy by the bank to shrink parts of its international business, the decision comes as Greece makes a final attempt with international creditors for a bailout and to prevent a financial meltdown in the country. The RBS has been involved in shipping finance for more than 250 years and is one of the world's leading banks in shipping finance. RBS is the leading lender to the Greek shipping market.

There are many different views on the future of energy supplies, but strong agreement in two areas; over the next 25 years or so population growth and GDP growth in the developing economies, particularly China and India, will drive global energy demand to increase by some 50% and second; while oil’s share of the energy mix will decline, the largest growth will be in consumption of natural gas. Why? Natural gas is an outstanding fuel for power generation, gas-fired power plant has the lowest Capex…

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.

Mobile harbor cranes (LHM) once again contributed strongly to the overall success of Liebherr Maritime Cranes. The 2013 year ranks amongst the most successful ever. Various highlights characterized the year, including the remarkable order intake for the 600 series in Latin America and the launch of the Liebherr Maritime Cranes simulator range. Latin America has a clear preference for Liebherr’s largest mobile harbor crane model, type LHM 600. In the last twelve months twelve units of this model have been sold in the Latin American market.

The International Shipping Strategic Development Forum met in Shanghai for wide-ranging discusion on the shipping industry. With high profile support from the Lord Mayor of London David Wooton who opened the forum, the event was attended by 450 and brought together some of the UK’s leading maritime professionals and China’s shipowners and charterers. Economic outlook: Standard Chartered China Chief Economist Shen Lan gave a modest assessment on global economic outlook. She predicts China’s economy will grow 7.7% in 2012 and slightly pick up to 7.8% in 2013, while US’ growth remains soft and European economy’s main risk is to the downside.

The UK’s £2bn maritime services sector cemented its ties with China’s shipping industry at the 3rd International Shipping Strategic Development Forum in Shanghai organised by the trade promotional body Maritime London (21 Sept). With high profile support from the Lord Mayor of London David Wooton who opened the forum, the event was attended by 450 and brought together some of the UK’s leading maritime professionals and China’s shipowners and charterers. Lord Mayor David Wooton…

Delegates at the World Petroleum Congress believe the oil and gas industry is not doing enough to encourage future generations to join the sector, according to research from GL Noble Denton. Oil and gas industry professionals believe that the sector needs to work harder to encourage future generations to choose a career in energy, according to a poll conducted yesterday at the World Petroleum Congress in Doha. 57% of participants said companies need to make greater efforts to demonstrate the benefits of a career in the oil and gas industry to young people…

Money and Ships conference to review current situation after global attacks hit all-time high of 266 for the first half of 2011- problem costs industry up to $16 billion annually. Global attacks on ships rose to an all-time high of 266, during the first six months of 2011 up from 196 in 2010 according to the International Maritime Bureau (IMB). More than 117 ships were attacked and 20 seized, by pirates off the coast of Somalia alone since January 1, 2011, holding 28 ships and 518 hostages for ransom as of the end of April 2011. These issues are to be raised and reviewed by industry experts at Middle East Money and Ships conference, which takes place at the Address Hotel in Dubai Marina on 16 October 2011.

Victoria Santos-Pires has joined London-based ship finance consultant Eurofin. Santos-Pires has been a shipping financier for more than fifteen years, most recently as loan portfolio manager with Tufton Oceanic Limited where, in an eleven-year spell, she handled the overall implementation of loan transactions. Prior to that, she was with Swiss Cantobank in London, and Chancery Bank. In addition to her extensive experience of the ship finance sector, Santos-Pires brings to Eurofin client, transaction and bank syndicate management skills, together with financial and documentary administration capabilities, and refinancing, restructuring and vessel sales experience.