Shipping Projects
The business of large equipment financing today often requires complex transaction structuring, involving multilateral currency considerations, mixed maturities, etc. This if also often the case with financing of substantial shipbuilding, or acquisition, projects. CCC has developed several structures, which handle those requirements very well.
A substantial shipping project can sometimes be a suitable basis on which to securitize the relevant transaction by way of the issue of commercial, asset-backed securities, relying, inter alia, on the support of the chattel mortgages. Of course, other, more traditional structures may also suit a large proportion of such transactions.
In the case of vessel finance, a number of application specific details should be provided with any application for funding.
Assuming the application concerns a cargo vessel or vessels, tanker, etc., the application should set out a list of transportable products to be carried, as well as quantities, and transport conditions, including simultaneous transport of different products, grades and/or capability.
Certainly, any charter arrangements, and/or related letters of intent from actual or prospective charterers and/or purchasers should be included.
There should always be a complete vessel description, including hull and other essential specifications of the vessel.
In the case of existing vessels, the application should contain details of the current owner and registry, a list of current approvals, details of radio, main and auxiliary engines (including type, and make, serial numbers, maximum continuous power, fuel grade), bunker capacity, cruising range, water storage, ballast tanks, mooring devices, all cargo handling machinery, and crew accommodation.
It should also contain a copy of all classifications and certificates, including Merchant Marine Register, IMO, USCG, RINA, canal usages, etc.