New course from Maritime Academy Hellas on Shipping Finance

TIN news:  In today’s constantly shifting economic climate, ship finance is one of the most affected areas. Charter markets are struggling and the international banking sector has been heavily affected by the credit crunch and strict regulatory controls, caused by the fall of Lehman Brothers. Now, more than ever, we need to understand and “Think out of the Box”. After all, shipping is a capital-intensive industry.

To that end, Maritime Academy Hellas is offering a course on “SHIPPING FINANCE: Understanding and Creating Perspectives (Thinking out of the Box)” in cooperation with Mrs Katerina Stathopoulou, Executive Director Investments & Finance Ltd, DNV GL’s Maritime Academy Trainer.

The course will examine the financing issues of a shipping investment and how these are addressed by bank financing and alternative financing schemes.

The following will be addressed in detail:

• General principles of shipping finance and the impact of economic variables
• Objectives of borrowers and lenders, risk analysis, securities and cashflows
• Various financing schemes available (bank debt, private equity, capital markets)
• Components of a shipping investment appraisal
• Cost of capital and the capital structure of the company (debt/equity mix)
• What is a non-performing shipping loan and how can it be handled – Borrower’s and Lender’s perspective

Furthermore, and to put theory into practice, participants will assess a shipping investment through cashflow analysis, create a Loan Proposal for this investment, and discuss in detail the Term Sheet and major clauses of the Loan Agreement.

Examining and restructuring a non-performing loan will also be discussed and issues addressed will include:

• Can lenders avoid losses
• Can default be predicted (early signs)
• What actions can be taken and who should take them
• Can the value of a loan be recovered and how

Setting financing on a solid basis by creating perspectives is one very important step that will enable shipping companies to sail the “rough seas” and look forward to the future.