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2. REMAINING COMPETITIVE IN A CHANGING MARKET

Strategic Financial Tools

This module examines the challenges and issues in today’s maritime sector, in terms of the financial management and investment appraisal, the availability of bank finance and the bank credit analysis as well as the alternative sources of ship finance, including Asian financing, Export Credit Agencies, private and public equity, high-yield bond markets and mezzanine ship finance. Advanced knowledge of shipping financial management and the impact of economic variables on the financial operations of shipping business organizations are analysed. You will receive in-depth training through several hands-on exercises and case studies, in order to enable you to develop, appraise, negotiate and select alternative shipping projects.

Learning outcomes

By the end of the module, you should be able to:

  • Appraise the ship finance sector in terms of markets, participants, sources of ship finance, current trends and future challenges

  • Implement financial analysis for investment in the shipping industry

  • Analyse the cost of capital and the capital structure of maritime organizations

  • Develop a deep understanding of shipping bank processes when extending a shipping loan facility

  • Evaluate alternative sources of capital for shipping projects

  • Evaluate the appropriateness of private and public equity and high-yield bonds

Course outline

  • Shipping markets: cyclicality, timing and forecasting

  • Capital budgeting and investment appraisal

  • Cost of capital and capital structure in shipping

  • Financial analysis of a shipping project

  • Bank shipping loans and bank syndication

  • Bank credit policy and analysis

  • Bank loan monitoring, legal considerations and workouts

  • Issuance of a shipping bank loan

  • Alternative sources of ship financing (public and private equity and debt, leasing, etc.)