1. RETROFIT FINANCING BLACK HOLE OR EMERGING PRODUCT Alan McCarthy
UK Chamber of Shipping
Ballast Water Event – 23rd November 2016

2. Have Faith
Field of Dreams – Directed by Phil Alden Robinson, Starring Kevin Costner

3. The Dilemma
Regulatory restrictions on international banks has created a near vacuum for financing of small and medium size shipping companies.
This will not improve in the near term
The IMO Convention on Ballast Water Management is now ratified and will come into effect.
50,000 ships?
$60 billion in funding costs?
With Sea Transportation accounting for <90% of international trade, it is inconceivable that funding will not be available for necessary retrofitting

4. Supporting Evidence
Thematic Investing: Blue Revolution – Global Water Primer
Bank of America Merrill Lynch – April 2014

5. Supporting Evidence
Thematic Investing: Blue Revolution – Global Water Primer
Bank of America Merrill Lynch – April 2014

6. Supporting Evidence
Thematic Investing: Blue Revolution – Global Water Primer
Bank of America Merrill Lynch – April 2014

7. Supporting Evidence
Thematic Investing: Blue Revolution – Global Water Primer
Bank of America Merrill Lynch – April 2014

8. Sources Owners’ Equity Banks Export Credit Agencies Supplier Credits
Quasi-Government

9. Owners’ Equity Make the Corporate Case for Investment
Everybody else will – and there will be no lending or investment if there is no payback.
Consolidated corporate structure
Best practice Corporate Governance
Sound Financial Condition
Make the Market Case for Investment
Reasonable and realistic revenue and cost projections
Modest amortisation profile
Maximum up to next survey - 5 years
If you cannot justify the investment – should you be in the business?
Older ships for recycling
Industry consolidation

10. Banks Make the Corporate & Market Case Don’t hold your breath
This is not shipping finance in its traditional form
Probably not realistic to offer ship mortgage security
Working Capital facilities
Short tenors (annually renewable lines of credit)
Full corporate support
More acceptable demand on bank’s capital under new (Basel II and II Regulations)
Don’t hold your breath

11. Export Credit Agencies
SOME 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. Export Credit Agencies
GERMANY
Euler Hermes
KfW IPEX-Bank
Eurofin Group
Eurofin S.A. - Athens
Eurofin International Ltd – London
Seafin Ltd - Singapore
German Equipment
Meaningful Deal Size – (Minimum $20 million) means fleet wide project

13. Supplier Credits “ “

14. Quasi Government
European Investment Bank

15. EIB
Under the umbrellas of the European Fund for Strategic Investments (EFSI): Green Shipping Loan Programme
and
the Connecting Europe Facility (CEF): a new financial instrument to further support Green Shipping Investments

16. EIB
Make the Corporate & Market Case

17. EIB

18. CEF

19. The Light at the End of the Tunnel

20. The Light at the End of the Tunnel
I M O
BWTS