News Column


February 23, 2014

Financing will be the "biggest challenge" for shipowners in 2014, with small, non-listed companies left out in the cold, Precious Shipping boss Khalid Hashim quoted as saying.

"Fundraising will continue to be the biggest challenge that shipowners will have to face during 2014," said Hashim, managing director of Precious Shipping, in the company’s annual review.

The review noted that traditional shipping banks were either unloading their portfolios or exiting ship finance completely. "However, non-traditional lenders have, and will continue to come, to the rescue of shipowners," said Hashim.

A major source for many in recent times has been from equity and debt markets. In an apparent reference to companies such as Scorpio Bulkers the report commented: "We have seen very large sums being raised, at times by people who have still to have a single ship in the water. The way these markets function continues to amaze us!"

It was noted such sources of finance tend to be much more expensive than traditional lending and can open or shut very quickly depending on market conditions.

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Source: Pakistan & Gulf Economist

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