Out-of the-Box Thinking or the Structured Finance Award

One transaction executed this year was sufficiently impressive and out of the ordinary to cause the Marine Money editors to see the need to create a new category of award as we view it as a precursor of the future. No matter what our more jaded readership may think, it is not a quick solution just to reward another institution as a consequence of a plethora of good deals. We do not take additions lightly. The transaction is, as you will see below, a public debt deal; yet it is also so much more than that. It represents the recurrent themes of out of the box thinking, best practices and imagination gone wild on the balance sheet.

As a consequence of large capital requirements, credit capacity constraints and a desire to shift risk, owners saw the limitations of the available standard finance products to deal with these issues and sat down with their bankers to see if any of the existing structured finance tools could be applied to shipping. Although banks had previously securitized their loan portfolios, it was BNP Paribas that put together the first securitization of a fleet of vessels rated by Standard & Poor’s and Moody’s. It was their experience in and lessons learned from aircraft financing that were clearly critical to making this happen.

This is only an excerpt of Out-of the-Box Thinking or the Structured Finance Award

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.