Tailor-made financing structures for shipping and offshore.
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Financing of modern quality tonnage
We offer first priority loan financing of vessels in the dry bulk, tank, chemical, container, gas, car transport and offshore supply sectors. We have a main focus on modern and efficient quality tonnage built at well known shipyards. Our specialized team has extensive experience with shipping and financing processes, and as a customer you will be assigned a dedicated person responsible for the entire process, from initial negotiations to drawdown of the loan.
« «Our edge is quick feedback, fast credit process, short decision lines, specialized team and high level of personal service.» »
Morten Kvalshaugen, Head of Shipping & Offshore
Small and medium sized shipping companies or syndicated shipping projects.
Our customers are typically small, medium-sized shipping companies or syndicated projects that need part financing of one or several vessels. Our main focus is supporting customers with a Norwegian link, however, under certain conditions, we can also provide financing for shipowners with foreign ownership. Vast sector experience and strong commercial mindset are emphasized in our credit decisions.
Financing structures for shipping and offshore
Pareto Bank offers financing directly to shipping companies. For recourse facilities where the facility amount is partly or fully guaranteed by a reputable and financially strong counterparty, higher LTVs and longer repayment profiles can be considered. For full recourse facilities to reputable shipowners, the bank can provide loans of more than USD 30 million per client if certain criterias are met.
Pareto Bank offers financing of syndicated shipping or offshore projects established and managed by Norwegian project houses. The vast majority of the projects we finance are non-recourse and as such vessel type, market outlook and the cornerstone investor’s track record and experience in the industry is of great importance to the bank. For project financing our focus is financing of modern and liquid assets. Normally we offer a loan to value ratio (LTV) between 50 and 60 %, however this is dependent on the asset type, employment and contract coverage, any additional security etc. For project financing the ticket size normally stays between USD 10 million and USD 20 million.
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How can we help?
First, agreement is established on indicative terms and conditions. Thereafter, the financing will be credit processed by the bank which usually takes around 2 weeks. As soon as the customer has accepted a credit approved firm offer, the bank, in collaboration with an external legal counsel, will start drafting the loan documentation and collecting CP documentation. From agreement on indicative terms to drawdown of the loan, the process can take from 5- 8 weeks.
The majority of the shipping and offshore financings we provide are between USD 10-20 million per project. However, we do have the ability to provide loans of more than USD 30 million per customer if certain criterias are met.