Asset Finance & Leasing
We represent retail investors seeking equity investment opportunities as well as ship owners seeking joint venture financing.
Asset Finance & Leasing
The goal of structuring the ownership of any asset is to protect the value of the asset owners’ equity in it. Structured financing of vessels creates complex ownership interests with many beneficial owners i.e. those who obtain the ultimate, real benefit that comes from owning it.
The transaction structures and commercial solutions we have developed give our clients a competitive edge. We can manage the entire transaction for each client, advising on asset finance and wider corporate and commercial matters.
Our areas of work include:
- Cross-border leasing
- Islamic finance
- Joint ventures
- Structured asset and debt financing
- Structured and operating leasing
- Security arrangements
- Representing the purchasers of a 70 percent ownership interest in two new vessels financed by a bank group secured loan to be repaid from revenue provided by time charters of the two vessels for use by a Saudi oil producer.
- Providing counsel to a shipping company renegotiating and restructuring a co-ownership joint venture with individual private investors.
We have helped our clients’ purchase vessels using leveraged and synthetic leasing arrangements, which allows them to finance the acquisition partly by traditional bank loan, and the remaining sum through long-term finance lease’s initial deposit.
A lease arrangement is one means of financing the acquisition of a vessel. The financier can utilize a bareboat charter party as the vehicle for the loan repayment agreement. We regularly advise shipowners on multiple structured leveraged finance lease which allows them to finance the acquisition partly by traditional bank loans, and the remaining sum through long-term finance lease initial deposit.
Joint Venture Financing
Structured joint venture financing includes the lender as an additional investor in the financing of new-builds and purchase of new ships. We have assisted a number of ship owners and retail investors to create unique joint venture structures to acquire vessels.
Joint ventures act as alternative sources of finance for capital acquisitions.
Most prevailing example of JV financing are the shipowners accessing the much needed liquidity from private investors through the formation of a new joint ventures.
By investing through a partnership rather than directly in issuing firms, investors delegate to the general partners the labor-intensive responsibilities of selecting, structuring, managing and eventually liquidating private equity investments. However, limited partners must be concerned with how effectively the general partners safeguard their interest.
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