SHIPPING FINANCE

1

GEORGE C. XIRADAKIS

FOUNDER – MANAGING DIRECTOR

FLEETS & ORDERBOOK

2

S&P ACTIVITY (PURCHASE)

3

Source: Allied Shipping Research

WHERE DOES THE LIQUIDITY COME FROM?

4

Capital Markets -

Debt

S&P -

N/B orders

DEBT & EQUITY MARKETS IN 2019

5

CAPITAL MARKETS IN 2019

6

Maritime Industry raised $8,5bn from the capital markets in

2019, which proved a difficult year for the industry and global

stock markets

SHIPPING

IPOS ($ 15M)

FOLLOW-ONS($2,5B)

BONDS ($5,8B)

7

Source : Clarksons

Company Type USD Danaos Shipping Follow On 56.50

GasLog Bond 98.30

Navios Acquisition Follow On 15.00

Tsakos Energy Nav Follow On 35.00

Eagle Bulk Shipping Bond 114.00

Attica Group Bond 195.00

Okeanis Eco Tankers Follow On 15.00

GasLog Bond 75.30

Seanergy Maritime Follow On 14.30

Globus Maritime Bond 5.00

623.40 TOTAL

GREEK SHIPPINGIPOSFOLLOW-ONSBONDS

8

Source : Clarksons

A bit more than

Half a Billion US$!

Source : Clarksons

52 BANKS ARE INVOLVED IN GREEK SHIPPING

9Source : Petrofin

SWOTANALYSISS

• Industry expertise• Ability to finance

specialized niche markets

• Historically customer/relationship oriented

• Complete integrated financial services (hedging, market risk mitigation, shipping operation)

W

STRENGTHS

S

WEAKNESSES

• Heavily regulated-Strict capital adequacy requirements

• Ship financing is heavily capital intensive

• Ship financing is a marginal activity in terms of volume that can generate disproportionate provisions

• Narrow segment diversity vs land-based corporates

• Cost of dollar liquidity for the European Lenders

• Disappointing syndicated market

OPPORTUNIT

IES

O• Good timing for

entry/expansion:• Banking market is

being reshaped following the exit of lenders.

• Strong high quality companies have emerged from the 2000s positive circle

• Week companies were eliminated in the 2010s low circle.

• JV with Asian Leasing Cos to provide innovative ship financing.

T

THREATS• Eurozone weakness

• High cyclical market• Strict banking

regulations• Increased

competition from alternative (often non regulated) sources (e.g. funds, leasing etc)

• Funding of Asian Leasing Cos

• Banks are not flexible any more

BANKS FINANCING

SWOTANALYSIS

Strengths

• Industry expertise• Ability to finance specialized

niche markets• Historically

customer/relationship oriented

• Complete integrated financial services (hedging, market risk mitigation, shipping operation)

12

• Heavily regulated- Strict capital adequacy requirements

• Ship financing is heavily capital intensive

• Ship financing is a marginal activity in terms of volume that can generate disproportionate provisions

• Narrow segment diversity vs land-based corporates

• Cost of dollar liquidity for the European Lenders

• Disappointing syndicated market

Weaknesses

13

• Good timing for entry/expansion:

• Banking market is being reshaped following the exit of lenders.

• Strong high quality companies have emerged from the 2000s positive circle

• Week companies were eliminated in the 2010s low circle.

• JV with Asian Leasing Cos to provide innovative ship financing.

Opportunities

14

• Eurozone weakness• High cyclical market• Strict banking regulations• Increased competition

from alternative (often non regulated) sources (e.g. funds, leasing etc)

• Funding of Asian Leasing Cos

• Banks are not flexible any more

Threats

SWOTANALYSISS

• Industry expertise• Ability to finance

specialized niche markets

• Historically customer/relationship oriented

• Complete integrated financial services (hedging, market risk mitigation, shipping operation)

W

STRENGTHS

S

WEAKNESSES

• Heavily regulated-Strict capital adequacy requirements

• Ship financing is heavily capital intensive

• Ship financing is a marginal activity in terms of volume that can generate disproportionate provisions

• Narrow segment diversity vs land-based corporates

• Cost of dollar liquidity for the European Lenders

• Disappointing syndicated market

OPPORTUNIT

IES

O• Good timing for

entry/expansion:• Banking market is

being reshaped following the exit of lenders.

• Strong high quality companies have emerged from the 2000s positive circle

• Week companies were eliminated in the 2010s low circle.

• JV with Asian Leasing Cos to provide innovative ship financing.

T

THREATS• Eurozone weakness

• High cyclical market• Strict banking

regulations• Increased

competition from alternative (often non regulated) sources (e.g. funds, leasing etc)

• Funding of Asian Leasing Cos

• Banks are not flexible any more

BANKS FINANCING

NEW TRENDS…..POSEIDON PRINCIPLES

On 18th June 2019, 11 banks with collectively over $100bn in assets and

representing nearly 20% of the global ship finance signed a global framework

agreement called the Poseidon Principles.

The ultimate goal of the Poseidon Principles Association is to create a new

standard that may be adopted by many more lenders and ultimately create more

favourable rates for lower carbon vessels.

16

17

Piraeus Head OfficeChandris Building, 95 Akti Miaouli, 18538 Piraeus, GreeceTel: +30 210 4291226, Fax: +30 210 4291230 E. mail@xrtc.gr , W. www.xrtc.gr

THANK YOU FOR YOUR KIND ATTENTION