Norwegian Bonds Enjoy Banner Year

2006 was another powerful year for the business of ship finance. Banking budgets were made by September and the last quarter made many a bonus. While the world’s capital markets continue to grow in product and structure ranges and shipping continues to access the most competitive available capital, nowhere was the excitement greater in 2006 than Oslo, where a robust bond market propelled dozens of financings.

Pareto estimates that the size of the market reaches $4 billion dollars. Total issuance in 2005 tripled from US$900 million to US$2.85 billion. And in 2006 the amount has grown to US$4.5 billion.

Take a trip around the world and in almost every maritime finance center new or near records will have been recorded in the continuing expansion of the business. Germany, Singapore, London, New York, Paris, Oslo, Athens, Shanghai, Tokyo, Seoul – name the center and the fact is those markets are being well served by a competitive, global and creative community of capital providers.

The global lending markets volumes grew by 9% through the first three quarters of 2006 according to Nordea. This increase was led by acquisition financings. Merger and acquisition borrowings were up 67% through that same three quarters as high vessel prices and long delivery times for newbuildings drove M&A activity. Re-financings were substantially reduced, though those done continue to be done so on attractive terms and a few even on an unsecured basis.

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