Alternative Sources of Shipping Finance Gerasimos P. Zolotas.: London.: Athens.: Singapore Eurofin Eurofin S.A. Seafin Presentation to 3 rd Maritime Economies Shipping Conference 2013

2 Oldest, largest, specialized ship-financing investment boutique with global coverage  US$20 Billion Ship-Financing Deals (globally)  FlexibilityTailor made structures  Commitment Team dedicated to ship-financing  Strong RelationshipsShip-financing Providers / Owners  RecognitionRepresenting KfW IPEX-Bank  Global CoverageOffices in major shipping centers  30 Years Committed in Ship-Finance London Athens Singapore Eurofin Group (Overview)

The Debt Ship-financing sector 3

Getting a loan can be tougher than robbing the bank 4 Ship financing environment: EUROPE

Are Shipping Banks still there? Senior Debt – Global Ship-Financing environment  Greek Banks : CLOSED  UK Banks: LIMITED Capacity (if any)  FRENCH Banks: LIMITED Capacity (if any)  GERMAN Banks: SOME Capacity for new deals  Scandinavian / Swiss Banks / US / Australian: (SELECTIVE ) All Re-organizing Balance Sheets / Re-building regulatory capital (BASEL III) 5

INCREASE from 2008 DECREASE from 2008 Source: Marine Money, May Largest Global Shipping Banks Portfolios in Dec 2012: US $347.6 billion (from US $358 billion in 2008) Reduction in Global Shipping Banks’ Capacity Senior Debt – GLOBAL Ship-Financing environment 6

 Chinese Ship-financing  Export Credit Agencies  Alternative Ship-financing Sources Is there light at the end of the tunnel? Filling the gap 7

 CHINESE BANKS CAPACITY IS NOT AN ISSUE  POLICY BANKS China Exim Bank China Development Bank Is there light at the end of the tunnel? Chinese Ship-financing 8

Chinese Banks – Capacity: NOT an issue 30 Biggest Banks Globally (by Market Cap) May

Are they really there? Chinese Banks  Issues for (NON policy) Chinese Shipping Banks (a) Credit Tightening (control an overheated economy) (b) HIGH US $ Funding Cost (Scarce Availability)  Requirements (A) Strong Chinese Element: (China Newbuilding / Time Charter to Chinese SOE) Chinese Newbuilding Requirement is not being met 10 Not particularly relevant at present for the Offshore & Energy Maritime

 Export Credit Agency (ECA) Ship-Financing Structures Is there light at the end of the tunnel? ECA 11

Competition at a political level Export Credit Agency (ECA) Structures GOVERNMENT AGENCIES ASSISTING EXPORT FINANCE JAPAN NEXI: Nippon Export and Investment Insurance JBIC: Japan Bank for International Cooperation KOREA K-sure: Korea Trade Insurance Corp. Korea Exim Bank NORWAY GIEK: Insurance Agency Eksportfinans GERMANY Euler Hermes KfW IPEX-Bank 12

KfW IPEX-Bank finances Royal Caribbean German ship financier KfW Ipex led the export credit financing $997 million for USA shipowner Royal Caribbean International. The vessel was ordered from Papenburg-based Meyer Werft. Competition at a political level Export Credit Agency (ECA) Structures 13 The loan is covered by a government export guarantee administered by credit insurer Euler Hermes.

THENAMARIS SECURED $400 MILLION LOAN FACILITY FOR ITS 3 LNG NB. Competition at a political level Export Credit Agency (ECA) Structures 14 A $200 million tranche was extended by KEXIM and the remaining $200 million was equally shared between the following 3 banks ($66.7 mil. each): DnB NOR (which acted as an arranger for this deal), ABN AMRO and ITF International Transport Finance Suisse AG (part of DVB Bank).

 Public Equity  Public Debt  Private Equity Is there light at the end of the tunnel? Alternative Ship-financing sources 15

Public equity helped (if you were public) Alternative ship financing: Public Equity  Powerful for already listed shipping companies Mostly Follow On Offerings to reduce Debt Exposure  Gaslog announced that it has priced an offering of NOK 500,000,000 aggregate principal amount of senior unsecured notes due OPEN - for Offshore & Energy Maritime

Attractive alternative to L/T amortising debt Alternative ship financing: Public Debt  Accommodating for already listed companies Closed in the heights of the credit crisis, but opened up quickly from Q2 2009, faster than expected Non-investment grade bonds High yields / Convertibles  Good opportunity to diversify Shipowners: Ability to meet near term liquidity needs and to improve near term cash flow 17 OPEN - for Offshore & Energy Maritime

Project-specific bond issuing Alternative ship financing: Project Bonds  Can be large sums of money  Very long-period loan tenors, i.e. over 15 years  Eliminates refinancing of balloon 18 OPEN - for Long-term Projects  So far very few deals have been seen  Requires long-term employment  Preferable if the company is listed Very new product started by Société Générale

New Loan with Attractive Terms Alternative ship financing: Term Loan B Facility  Long profile  Back-loaded amortisation  1% capital repayment per quarter 19 So Far Concluded $1.8 Billion – New Senior Secured Term Loan B Facility 250 Million – New Senior Secured Term Loan B Facility

Private Equity is getting more popular Alternative ship financing: Private Equity  Equity Funds are becoming more involved in shipping (over 70 transactions so far)  They are buying shares from listed companies  Forming Joint Ventures with established shipowners 20 OPEN - for Any Asset Class  Dry  Wet  Containers  Gas Interested in all sectors

Thank You Eurofin Group of Companies 21 Gerasimos P. Zolotas.: London.: Athens.: Singapore Eurofin Eurofin S.A. Seafin 3 rd Maritime Economies Shipping Conference 2013