With access to more traditional finance limited, shipping companies are increasingly considering private equity and debt markets as a way to help them make key capital investments, whether meeting new emissions legislation or ballast water management controls or expanding their fleet to meet new opportunities. Likewise, many investment banks and bond traders are becoming alert to the significant opportunities in the sector.
The course aims to raise awareness of the substantial benefits and risks of equity and debt finance, to shipping companies looking for capital and to investors looking at shipping as a market with increasing accessibility and potentially strong returns on investment.
Led by Professor Nikos Nomikos of the Centre for Shipping, Trade & Finance at Bayes Business School (formerly Cass Business School), Ship Finance provides an analysis of the IPO and debt issuance process, the advantages and disadvantages of using the capital markets, underwriters and their role, credit rating agencies, and institutional investors.
Using a variety of real-life examples, course participants will learn how an IPO is made, what to look for when choosing an underwriter, how to identify an under-priced IPO before it is made public using only publicly available information, how to issue a high-yield bond and how to calculate the probability a high-yield bond will default.
Click here to download the course brochure.
| Course leaders | ||
Professor Nikos Nomikos |
Centre for Shipping, Trade & Finance |
Bayes Business School (former Cass Business School) |
Dr Nikos Papapostolou |
Bayes Business School (former Cass Business School) | |
Ship Finance is led by Professor Nikos Nomikos of Bayes Business School (former Cass Business School), director of the highly-respected Shipping, Trade and Finance MSc course and author of the leading reference book on shipping risk management – Shipping Derivatives and Risk Management.
Professor Nomikos holds a number of faculty positions at other universities, including Copenhagen Business School and the University of Geneva.
Dr Nikos Papapostolou has been with the Costas Grammenos Centre for Shipping, Trade and Finance since 2002. He is a Senior Lecturer in Shipping Finance, acts as the Associate Director to the Centre and he is the Director of the MSc in Shipping, Trade and Finance and Stelios Scholars Programme Lead at Cass Business School.
"A practical overview for shipping companies and investors on how to use the equity and debt markets"
Course Overview
| Module Outlines | ||
Introduction to Ship Finance
An overview of the various sources of funds and an in-depth examination of green shipping finance.
|
Part 1: Sources of Funds for Shipping projects |
Public equity capital markets Public equity, SPAC and ATM offerings Shipping Initial and Secondary Public Offerings Valuation of Shipping Stocks: Practical Example Market Performance of Shipping Stocks
Public debt market High yield and Investment-grade shipping bonds Credit ratings and default rates Seniority and recovery rates Shipping Bond Valuation:Practical Example
Banking and Bank Loans Ship Finance Landscape
Alternative Sources of Finance Preferred Shares Warrants and Convertibles |
Part 2: Green Finance, Leasing and Private Equity |
Green Finance Shipping decarbonisation ESG Criteria Green bonds Sustainability linked loans Carbon pricing Poseidon Principles
Leasing Structure of Leasing deals Sale and Leaseback deals Chinese leasing
Private Equity (PE) Structure of PE deals Examples of recent PE deals |
|
Equity Capital Markets
|
Equity Capital Markets |
Equity public offerings Main reasons to go public
The Underwriter Role & credentials; syndicate
IPO process Issuing methods Initial steps Registration Marketing Pricing/allocation Aftermarket activities
Investors & shipping companies Institutional ownership Performance Investment decision factors
Measuring financial performance Metrics & ranking |
Pricing of Shipping IPOs |
Pricing of Shipping IPOs |
Pricing of shipping IPOs Why Shipping IPOs are sold to investors at a discount Determinants of IPO underpricing: factors affecting first-day trading returns of shipping stocks Calculating the probability of IPO underpricing |
Shipping Company Valuation Case Study: Neptune Orient Lines (NOL)
A detailed look at the French carrier CMA CGM's 2016 acquisition of NOL. Comparison of different valuation methodologies and detailed analysis of the position of equity holders and bond-holders. |
NOL Case Study |
|
Equity Capital Markets Case Study: Britannia Bulk IPO
A detailed examination of the 2008 IPO of dry bulk owner Britannia Bulk. Practical analysis of the IPO prospectus focusing on the: deal structure; strengths and weaknesses; timing and pricing of the offering and, financial strength of issuer relative to the industry average. |
Case Study Britannia Bulk IPO |
|
Debt Capital Markets |
Debt Capital Markets |
Shipping bonds: advantages & disadvantages Bond issuance process Credit ratings: role of credit rating agencies, assigning credit ratings, shipping credit rating model Defaults & restructuring options |
Investing in Shipping Bonds |
Investing in Shipping Bonds: Calculating the Probability of Default |
Default triggers in shipping projects Factors affecting the probability of default Calculating expected default frequencies Practical examples of calculating the probability of default: - with company specific data - with Bond yield data - for asset-backed shipping loans |
Shipping Loan Risks
|
Part 1: Shipping Loan Risk |
Cash flow analysis of a shipping project Investment decision under uncertainty How to determine the maximum amount to lend on a shipping project Managing loans credit risk Value-at-Risk for loans |
Part 2: Ship Valuation Case Study: VHSS |
Hamburg Ship Valuation formula. A Real life case study on how to calculate the fair value of second-hand vessels and how Banks tried to modify the asset value on their Balance sheets in order to mitigate losses and covenant breaches following the financial crisis of 2008. |
|
Shipping Sentiment |
Shipping Sentiment |
What is it and what is its role? Measuring shipping investor sentiment Usefulness of shipping sentiment Vessel price cycle phases & prediction Shipping sentiment as an investment timing tool |
Shipping Stocks Investment |
Shipping Stocks Investment |
Index tracking for passive strategies Active vs passive portfolio management Index tracking & metrics, problem formulation & portfolio construction Tracking the BDI and BDTI using Shipping stocks Shipping investor sentiment & stock investment Trading formulation Shipping sentiment & stock market indices: results & cumulative investment Recent tests |
Terms and Conditions
The Baltic Exchange must be in receipt of full payment before access to the course is granted. Each delegate is provided with 180 days access to the course. If you fail to complete the course in 180 days, then you may extend the course by paying a change fee (£50 + vat per 30 days). No course material may be copied or reused without the permission of the Baltic Exchange.
You must not allow any third party to use your account information and/or computing equipment to access the digital content or course that you have booked.
You may only print off any course materials for your own personal use. You must not provide, offer to sell, license or transfer the course materials (whether in whole or in part in any manner or form or in or on any media) to any other person unless we have agreed to this in writing.
In the event that we are unable to deliver classroom learning due to events beyond our control, delegates will be offered the choice of a discounted online only option, refund, reschedule to a future date, or access to an additional online course. 30% discount is available for employees of corporate member firms of the Baltic Exchange, up to and including the company’s number of individuals nominated as named Baltic Exchange members.
Further Questions
Please contact Bill Lines on:
Tel: +44 (0)20 3326 8460
Email: [email protected]
Previous Attendees
ALLSEAS MARINE S.A.
Baja Bulk Carriers S.A.
Cargill International SA
Core Synergy
Crédit Agricole CIB
Credit Suisse AG
d’Amico Shipping Singapore Pte Ltd
DNB Bank Asa
Drewry Shipping Consultants Ltd
Eagle Bulk Shipping Inc.
Eastern Bulk Carriers
Equinor
Fairdeal Group Management SA
Fearnleys Tankers (Singapore) Pte Ltd.
Fleet Management Limited
Frachtcontor Junge & Co. GmbH
Hamburg Commercial Bank AG
Huarong Leasing Management Hong Kong Company Limited
ING Bank N.V.
Intership Navigation Co. Ltd
MK Centennial Maritime B.V.
MST GmbH
NIBC
NS United Shipping (U.K.) Ltd.
OINO SHIPBROKERS
Oldendorff Carriers (Singapore) Pte Ltd
Oman Shipping Company S.A.O.C.
Petredec (Europe) Limited
PMG Holding AS
Raizen
Riverlake Shipping
Rivertrade Group LTD (c/o Solar Shipping)
Smarine Advisors Ltd
Spring Marine Management S.A.
Strategy Finance
Susesea Bulk Pte Ltd.
Tomini Shipping LTD
TOP TARGET LLC
Triton Navigation B.V.