Page 158 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΜΑΙΟΣ 2023

SHIPPING FINANCE

opportunities. It is therefore arguably perfect Greek owners have become much more agile
timing for shipowning companies to form new and accustomed to alternative finance struc-
relationships, though this will come at a higher tures.
price. Some prominent market players have Interestingly, the banks that have left the ship-
warned that the higher financing cost is here ping market in the recent past have largely
to stay. This could mean a number of things. been banks which also catered to the medium
For instance, cash heavy groups might opt to to small size range of the market (RBS, DVB and
finance their acquisitions through equity or UniCredit for instance come to mind). This has
joint venture arrangements, possibly leaving caused their former shipping clients to consider
room for the financiers’ liquidity to be diverted what other financing options are available to
elsewhere. This could be a welcome change for them, beyond the typical bank financing.
medium-sized companies that have seen part Two options in particular stand out the most:
of their lender base largely divert their funds to Greek shipowners are no strangers to joint ven-
bigger tickets in the higher end of the market. tures (JVs)with private equity firms which they
Another factor going forward, at least so far as have often had recourse to in the absence of
tankers are concerned, will be banks’ (particu- liquidity and available financing. Such ventures
larly European ones) environmental sensitivities will generally be more complex than the typical
and restrictions. In some cases this will mean shipping finance transaction companies may be
a blanket restriction on lending for this asset accustomed to requiring legal advice on corpo-
group. This now seems to have also impacted rate matters. As legal counsel to both private
the framework for JOLCOs, whose new regu- equity firms and shipping companies active
latory framework largely supports environmen- in JVs, we would provide specialist advice on
tally friendlier vessels. LNG finance however the relevant workstreams. These would include
seems to remains strong. advising on the jurisdiction suitable for the JV
But we would only be presenting a fraction of vehicle, the shareholders’ agreement, tax con-
the market if we limited the conversation in siderations and consideration of sensitive com-
question to the activity of the banks. The ship mercial matters. The documentation will need to
financier landscape goes far beyond that and clearly set out parties’ objectives and address

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