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diverSified portfolio

For specialist shipping and aviation financier DVB Bank Singapore is a key location.The bank,which organises its business on a sectoral basis,with its shipping book divided into 10 sectors, six of which are run globally from Singapore. After a grim year for

ship finance in general in 2009, last year proved to be a good one for DVB both in terms of new business and not incurring too many losses.An area that certainly kept the bank busy was what it calls value maintenance clauses,more commonly known as loan to value. In particular in sectors

such as its Singapore-based dry bulk business were busy due to the sharp drop in asset prices.The bank’s book of business in dry bulk is worth $2.5bn. The bank has repaired loans worth

$2.5bn out of a shipping portfolio worth $14bn in total. In total 88 loan facilities have required maintenance and 17 of these worth $350m were in the repair phase.“New business suffered because they were so busy, it has been a very intensive period,” says Dagfinn Lunde,member of the board of managing directors of DVB Bank. With a well-diversified

portfolio of shipping

business the bank was not too hard hit by the slump in business in any particular sector. For example its exposure to containerships was only about 10% of the bank’s shipping book of business. Where the bank did opt to expand

though was in the financing of container equipment.The price of dry shipping containers has skyrocketed from just $1,300 per box during the crisis to $2,800 or more now as demand has soared following a year when virtually no new containers were ordered. “So we went in and started financing the

box investments rather than the ships,” Lunde says.The bank currently has $1.1bn in container box financing,making it he believes the second largest financier in that sector.“In 2010 container boxes was our best area.” Lunde is upbeat about the prospects for container financing in the coming year with prices having stabilised.

Helping maketHeaSianvoice be Heard

SeaAsia 2011, held in Singapore at Marina Bay Sands from 12 – 14April this year,will be bigger than ever as the event makes its mark as the premier event forAsian shipping to come together and exchange knowledge and views on the industry. The bi-annual, three-day exhibition and

conference, organised by Seatrade and the Singapore Maritime Foundation (SMF) is in its third edition.At the time of writing 95% of the exhibition space had been booked by maritime, shipping and offshore-related companies.The organisers are confident of surpassing the 10,000 visitors from 62 countries that attended the 2009 edition of the event. Not only a maritime exhibition SeaAsia

is a key platformAsia’s top shipping executives to exchange their views on where shipping markets are headed and the important issues of the day. “Through SeaAsia,we hope to be the

focal point for the global maritime community to congregate in Singapore and most importantly, provide the platform for Asian maritime leaders to share their insightful perspectives on the various

aspects of the maritime business with the world.We certainly hope to make SeaAsia the iconic maritime show of Singapore,” says Michael Chia, chairman of SMF. The three-day conference will

focus on theAsian voice in world shipping, ship finance and offshore and engineering, as well as special technical and LNG shipping sessions. The conference features a top

level line-up of speakers including: Yudhishthir Khatau, vice chairman and managing director,Varun Shipping,Kenichi Kuroya, president and ceo of Kawasaki Kisen Kaisha,KyuhoWhang, president and ceo of SK Shipping, Andreas Sohmen-Pao, ceo of BW Group, and Noboru Ueda, chairman and president of ClassNK and chairman of IACS. “SeaAsia is recognised not only as a

platform for the exchange of knowledge and opinion, but as a recovery tool for sales and

marketing teams seeking to expand customer bases. Its value is underscored by the strong support we have from the international shipping industry,” says Chris Hayman, chairman of Seatrade.

Seatrade Singapore Report 2011


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