Strategy
Leading up to 2008 was what we called the China bubble, many Shipping finance institutions / banks had bought themselves expensive assets basis high evaluations created from the very high freight market. These assets were bought at 30-40% of their actual values and that by using excessive leverage tied to the speculative idea of an “ever growing” China market. When the financial crisis of 2008 pulled everything down, the freight market fell in a heap and so did the associated contracts.
In the post financial crisis era many financial institutions are burdened with these over expensive assets and coupled with the lowest freight markets in recent times. Effective servicing of their extended loans on these assets are one serious issue, a bigger one is the reduced realistic asset value. So buying these assets at below realistic values in today’s bottomed out market would hold great potential in appreciation and freight security at lower numbers in the better expected market cycle 3-5 years down.
The issue is which financial institution will effectively support purchase of 2nd hand value tonnage with their existing burden of expensive assets in the same class. The answer is alternate finance which was not effected during the last buying frenzy of 2008….. that is what we bring to the table! Our thinking is long term, our benefits our long term.
In Short:
ØNeed for alternative capital
Ø New entrants led by industrial end users from emerging economies.
Ø End users part recover their freight from ownership profits.
Ø Providing various hybrid forms of ownership to new entrants.
Ø Taking advantage of bottom cycle asset prices and stress deal.
Ø Handling investment through escrow arrangements ensuring funds used in agreed
direction only.
Ø Assets always in the name of the investors or their nominated offshore entities.
Ø All business planned and conducted under RBI Guidelines and regulations.
Bring us on the table and you wont let us go ! ...............
In the post financial crisis era many financial institutions are burdened with these over expensive assets and coupled with the lowest freight markets in recent times. Effective servicing of their extended loans on these assets are one serious issue, a bigger one is the reduced realistic asset value. So buying these assets at below realistic values in today’s bottomed out market would hold great potential in appreciation and freight security at lower numbers in the better expected market cycle 3-5 years down.
The issue is which financial institution will effectively support purchase of 2nd hand value tonnage with their existing burden of expensive assets in the same class. The answer is alternate finance which was not effected during the last buying frenzy of 2008….. that is what we bring to the table! Our thinking is long term, our benefits our long term.
In Short:
ØNeed for alternative capital
Ø New entrants led by industrial end users from emerging economies.
Ø End users part recover their freight from ownership profits.
Ø Providing various hybrid forms of ownership to new entrants.
Ø Taking advantage of bottom cycle asset prices and stress deal.
Ø Handling investment through escrow arrangements ensuring funds used in agreed
direction only.
Ø Assets always in the name of the investors or their nominated offshore entities.
Ø All business planned and conducted under RBI Guidelines and regulations.
Bring us on the table and you wont let us go ! ...............
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