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The shipping industry has faced its worst crisis during the last 25 years
The shipping industry has faced its worst crisis during the last 25 years. The limited liquidity of the shipping market and the trend of banks to limit their exposure have made shipowners to find new methods of financing their investment projects. Traditional lenders such as Germany’s Commerzbank and HSH Nordbank and the UK’s Lloyds and RBS are either exiting the market or trying to reduce exposure.
It is worth noting that during 2013 shipping companies have raised more than $8bn from stock exchanges of Oslo and New York. The truth is that equity funds remain a small player because traditional debt financing offers $250bn annually while during 2008 this figure was close to $500bn!
In addition, institutional investors such as private equity and hedge funds have emerged and play a key role in the shipping industry. From 2010 to 2013 nearly $15,6bn private equity funds have been invested, while $5bn of shipping loans have changed hands during the latest year. Read more
Source: CARBON POSITIVE
