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overview
Key Learning Outcomes
- Detailed review of ship finance market and options for funding merchant ships
- Compare secondhand and newbuilding ship finance projects
- The roles of parties and key considerations throughout Sale & Purchase (S&P) process
- Understand documentation, covenants and security in ship finance
- Understand how shipping bank loan and alternative sources of finance work
- How to get maximum value from the negotiation process
- Portfolio risk management in shipping
- Financial risk management – value at risk and real options application in shipping
- Understand how banks obtain funds to finance, the limitation and what financiers look for
- Sources of hindrance to completion of project and how to prevent
- Potential contentious aspects of the S&P process, alternative dispute resolutions
- Payment mechanics and Case law updates
Who Should Attend
- Shipowners and operators
- Ship brokers
- Shipping investors
- Corporate & Commercial Bankers
- Lawyers / in-house legal advisers
- Credit, Financial & Risk analysts
- Portfolio managers
- Charterers / shippers (Commodities, Oil & Gas)
- Classification societies
Digital Badge
Upon completion of this training course, participants will earn a digital badge.
Earners of Ship Finance, Sale & Purchase Certificate have acquired advanced financial, commercial & legal understanding in ship funding projects. They are competent in analysing the ship funding market, portfolio risk management in shipping, how commercial bank loan works, alternative funding sources and limitations. They have also examined practical considerations in S&P transaction, negotiation as well as associated contentious aspects .
Skills:
Ship finance, ship funding, sale & purchase, portfolio risk management, financial risk management, dispute resolution, bank loan, newbuilding vessels, secondhand vessel.
Eligibility:
Attend and participate in the 2 full days of training course duration, led by the designated training expert
Available to:
Seminar attendees
Singapore MCF Grant
You may be eligible for the Singapore Maritime Cluster Fund (MCF) Grant for up to 50% of the total course fee. Please contact Sushil Kunwar on +65 6989 6614 or email [email protected] for more information and eligibility criteria.
Agenda
SHIPPING MARKETS OVERVIEW
- The global shipping markets 2019
- Demand factors, future opportunities and financing implications
- Vessel valuations
- Outlook for new building projects
- The sale and purchase market
THE SHIP FUNDING MARKET IN DETAIL
- The need and function of finance in shipping projects
- Where is money coming from?
- Characteristics of the various institutions providing or arranging finance
- Options for funding merchant ships
- Secondhand vs newbuilding in ship finance
- Changing requirements of lenders and availability of finance in the current market
THE COMMERCIAL BANK LOAN
- Introduction into commercial loan finance
- The portfolios of the largest banks in shipping finance today – future of Asian banks
- What do shipowners want from their banks
- What do banks require from the shipowners?
- Assessing a financial proposal from a shipowner’s perspective
- Assessing a financial proposal from a banker’s port of view
FINANCING A SHIPPING PROJECT
- How do banks obtain funds to provide finance to shipping projects?
- Banks’ limitations on the provision of finance
- Risks and rewards for banks involved in ship finance
- Ship covenants
- The importance of documentation, covenants and security in ship finance
- Ways for a shipping finance bank to secure itself during the period of a loan
ALTERNATIVE SOURCES OF FINANCE FOR SHIP PURCHASE
- Mezzanine finance or leasing structures as alternative sources of finance and why?
- Deciding to go public or make a bond offer
- Investors’ perception of shipping bond and stock offerings
- Advantages and disadvantages of each type of finance as well as future potential
PORTFOLIO RISK MANAGEMENT IN SHIPPING
- Measuring risk & portfolio risk
- Beta and unique risk
- Diversification and Markowitz Portfolio theory
- Risk and return relationship
- Traditional diversification strategies shortcomings – cointegration
- Shipping application
FINANCIAL RISK MANAGEMENT – VALUE AT RISK AND REAL OPTIONS APPLICATION IN SHIPPING
- Overview of financial futures and options
- Options shipowners and charterers have to hedge their positions
- Different futures and forward contracts in shipping
- Ways and methods to price a financial option
- Shortcomings of traditional discounted cash flow (DCF) models
- Theory and the reasons behind Real Option Theory development
- Applying Real Option Theory and Value At Risk Theory to financial decision making in shipping
THE SALE AND PURCHASE – FUNDAMENTALS
- Typical types of buyers in the S&P market
- Differences between purchasing secondhand vs newbuilding vessels
- Factors affecting the price of secondhand vs newbuilding
THE S&P TRANSACTION PROCESS OF SECONDHAND AND NEWBUILDING VESSELS
- Requirements, negotiations, delivery & inspection
- Vessel circulars, sellers’ ideas, buyers’ ideas and requirements
- The role of the S&P broker
- Offer, counter offer and negotiations
- Confidentiality issue
- Time limit of offer, price, subjects, delivery and other conditions
- Memorandum of agreement deposit
- Drydocking and inspection
- Delivery and transfer of asset
- The payment in tranches method
- The role of the refund guarantee
- The role of Export/import banks
ROLEPLAY EXERCISE:
- Analysis and comparison of the 3 major ship sale & purchase forms
POTENTIAL CONTENTIOUS ASPECTS ON SHIP SALE & PURCHASE
- Analysis and discussion of the various legal aspects and cases in ship sale and purchase for new, secondhand vessels and vessels under construction
- Arbitration provisions of sale contracts, tribunal appointment
- Types of disputes in arbitration
- Mediation to disputes
- Case law updates
when & where
15 - 16 Jul 2019
Mandarin Orchard Singapore, by Meritus
333 Orchard Road, Singapore 238867
Tel: +65 6831 6062 | Fax: +65 6737 3130
Mobile No.: +65 8298 9442
Contact Person: Tan Ai Li
Email: [email protected]
Website: www.meritushotels.com
On-site & in-house training
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