Wei Jiafu.
EXPORT credit agencies are set to take an increasing role in ship finance as the availability of bank lending becomes tighter, according to a senior bank executive.
HSBC head of global shipping Mark Long pointed to the example of the Export-Import Bank of Korea (Kexim), which had given financial support totalling $10bn so far this year for South Korean shipbuilding contracts.
He told delegates at the World Shipping (China) summit in Dalian that the level of this year’s advances compared with $20bn Kexim gave in support for the entire five years between 2002-2007.
The $10bn included a $550m structured financing deal inked in July to back the construction of nine 13,100 teu boxships ordered by Germany’s MPC Capital at Hyundai Heavy Industries. The financial package comprised $440m in loans and $110m in guarantees. MPC Capital ordered the ships at a total cost of $1.53bn.
Export credit agencies would become an increasing feature of the ship finance sector, he said.
His comments were supported by Export-Import Bank of China deputy general manager Li Li, who said the bank had supplied $3bn to support orders at Jiangsu New Century Shipbuilding and $3.5bn to Dayang Shipyard, both in Jiangsu province.
She said the export-import bank was mulling plans to offer $8bn-$10bn to three shipyards in Zhejiang province.
Ms Li added that the bank is working on proposals for a syndicated refund guarantee that would help shipyards to secure orders after 2010.
Mr Long added that the global financial contagion meant it was “back to basics for banks” and that lenders would be more cautious over the next year or two.
With between $500bn-$650bn needed over the next four or five years if the current order backlog is delivered, Mr Long said the new orderbook “looks increasingly difficult to finance”.
He said he doubted whether there was enough debt available, and that delays and cancellations were inevitable.
But while financing would become more expensive and challenging to arrange, there would be opportunities, Mr Long said.
This optimism was echoed by Cosco Group president and chief executive Wei Jiafu, who said that glo
|
