Over the past 35 years, our group has arranged shipping loans totalling over $25 billion, while our team’s experience covers equity, financing, portfolio workouts, company evaluations, sale & purchase and general advisory mandates.
Advisory services to
Due to the ever-shifting financing landscape, Europe has always stayed ahead of the curve with identifying new financial institutions to do business in the shipping market. Our team has substantial experience in raising debt in the international markets in a number of different ways through:
- Commercial banking credits
- Club deals and Syndicated facilities
- Mezzanine Loans
- Project finance
For new and old investors in the shipping space, Eurofin Group is able to develop turnkey solutions by:
- Introduction to shipyards or identifying candidate vessels on the second-hand market
- Assist in financing of newbuildings or second-hand acquisitions
- Introduction to companies providing supervision services for newbuildings
- Introduction to management companies covering all required types of management teams
- Introduction to chartering brokers to fix vessels on period charters or spot charters
Eurofin approaches several investor pools in the execution of Equity mandates:
• Venture Capital: UK, US and Europe
• Institutional investors
• Private equity sources
• Major International Capital Markets – stock exchanges
As derivative products and other hedging instruments increase in popularity, the number of risk management strategies (financial engineering) made possible by these innovative financial instruments will also grow. In order to benefit from these new strategies, it is more important than ever to understand the latest derivatives instrument uses and today’s innovative transactions.
Our Group has developed the expertise and has advised some of its clients through the uncharted waters of this industry. Recent assignments have included modelling, coding, documenting, testing, and/or explaining pricing and risk management for contracts and transactions with underlying risk factors that have included standard, non-standard, credit quality and default risk.
Advisory Services to
Banks, depending on the world economy and the shipping industry cycle have decided from time to time to enter or exit the ship finance world. Moreover, financial institutions with a long presence in the shipping industry may decide to increase, reduce or refocus their shipping finance activities and loan portfolios.
Our international Group has advised and assisted a number of financial institutions on their strategic decisions with respect to Ship Finance.
Our services include:
• Advisory services to Financial Institutions willing to enter / exit or increase / reduce their presence in the ship finance market (on a global or local basis).
• Assistance to new entrants in the ship finance market in the establishment of a lending policy (geographic and clientele focus).
• Advisory services to Financial Institutions assuming a lead management role in syndicated or club deals.
• Advising on the development of strategies for the enhancement of ship finance yields.
• Advise on BASEL III agreement requirements for Financial Institutions involved in shipping finance (credit assessment, credit scoring, spread and fees adjustment).
Through our offices worldwide with an international shipping clientele, we have assisted many financial institutions to promote their services in new geographic regions and to new clients.
Banks benefit from our deep market knowledge and the close relationships we have built over the years with key owners.
Some of the mandates successfully completed include:
Italy: Introduced several well known banks to a number of Italian corporate clients with shipping interests and assisted them in their marketing efforts to promote shipping-related financing and derivative structures.
Turkey: We have assisted a number of European and US Financial Institutions to conclude business with reputable and established Turkish shipping clients.
Middle East: Assisted a traditional, private, Swiss banking institution in expanding and diversifying its shipping portfolio and private banking activities by introducing it to well established shipping clients in the Middle East.
The Eurofin Group has an experienced and dedicated team of professionals who are ready and able to assist and advise commercial banks and financial institutions in restructuring problem shipping loans and planning liquidation strategies for defaulted facilities.
Furthermore our international network of associates and contacts enables us to coordinate and supervise the process of enforcements in relation to international ship mortgages. Our global contacts also help us in identifying potential buyers for the assets.
Although the situation is not ideal, banks have occasionally found themselves as the owners of vessels when a client has defaulted and abandoned ship. Our global reach and our network of strong relationships can be very helpful in providing S&P solutions for assets banks need to dispose of. Eurofin is able to:
- Identify shipowners from our own network or through brokers interested in acquiring the vessel, whether by outright sale or with financing attached
- Keep transactions private & confidential
- Mediate between the bank and the shipowner to provide a smooth process until the sale is completed
Advisory services to
With its global presence, Eurofin is uniquely positioned to help advise debt funds regarding new and existing business by:
- Introducing them to good counterparties
- Providing background information and due diligence
- Mediation between funds and shipowners on new transactions
- Mediation between funds and shipowners on restructuring
- Assist in the sale of loans or vessels should the need arise
With several equity funds choosing to co-invest in the shipping space with shipowners, Eurofin is able to assist funds with:
- Provide analysis on the potential asset classes to help funds decide where they should invest
- Introduction to shipowning partners with a strong track record and expertise in the fund’s desired asset class
- Advise on the structure of the equity investment and/or joint venture
Sale & Purchase
Eurofin Group is currently offering the following services:
- Sale & Purchase of second-hand tonnage
- Demolition projects
- Package deals (i.e. S&P combined with financing and / or employment)
Eurofin Group is currently offering the following services through its partners and other brokers:
- Introduction to shipyards to order newbuilding vessels
- Identify which yards are able to build the vessel that matches the shipowner’s needs
- Assist in financing the newbuilding from either the shipyard or financial institutions
Under KfW in the last paragraph:
KfW IPEX-Bank is at present one of the largest shipping banks in the world, with a shipping portfolio of around US$17 Billion and already has a significant presence in the Greek market.
Eurofin & KfW IPEX-Bank
In June 2008 the major global financier KfW IPEX-Bank appointed Eurofin’s Athens office to act as its consultant in its efforts to increase its focus and exposure in the Greek shipping market. Eurofin assists KfW in developing a high quality Greek shipping loan portfolio by providing the bank with ongoing market intelligence on the Greek shipping market, introducing Greek owners to the bank, providing regular updates on the activities of potential Greek clients and identifying ship financing opportunities for the bank.
KfW IPEX-Bank brings together all financial service activities in which KfW Bankengruppe competes with other banks – corporate finance, structured finance, short-term trade finance etc. With a loan portfolio of EUR 62.1 billion, it is a large credit institution operating on a worldwide scale. Its credit worthiness is excellent in comparison with other banks, having a AA- rating from Standard & Poor’s and Aa3 from Moody’s, which stems chiefly from a solid market position in international project and export finance that was built up successfully on a global scale over fifty years as well as from its strong equity base and close ties to KfW Bankengruppe, which ensure refinancing at market rates at all times.KfW IPEX-Bank is at present the 5th largest shipping bank in the world, with a shipping portfolio of around US$22.5 Billion and already has some excellent Greek clients.