London, 18 October 2021
Following four years of growth, Macquarie Group’s Shipping Finance business’ loan book has recently passed $US1 billion. The business, which specialises in providing finance to small and medium sized shipowners, has now financed over 190 vessels globally, with a total market value of more than $US3 billion.
Macquarie identified the opportunity to establish its shipping finance business in 2017 as many traditional shipping banks significantly reduced their exposures or exited the industry completely. Macquarie was able to complement its asset finance expertise with significant maritime experience across commodities markets and businesses established in working capital solutions for shipping pools, freight and chartering, bunker fuel finance and fuel oil hedging.
Marc Hari, Head of Macquarie Shipping Finance explains: “The availability of conventional ship financing from traditional banks has reduced substantially in recent years. Shipowners are increasingly looking to alternative financing sources and that’s where we’ve seen continued demand in the market – despite the challenges faced by the global shipping industry during the Covid-19 pandemic. Macquarie is now an established, reliable and versatile finance counterparty to the shipping sector. We are proven in our ability to efficiently execute deals and we are continuously refining our approach and processes to best serve our clients’ needs.”
Based in London and Zurich, the business typically works with shipowners with fleets of between 10 – 50 ships, providing finance for the tanker, bulker and container segments and offers a flexible approach to client ownership structures, geography, vessel age, fleet size, and vessel employment strategies. Macquarie Shipping Finance is also working with the alternative capital providers such as Fleetscape Capital Limited to support vessel owners looking at higher leverage situations.
The team consists of 14 industry experts, including dedicated marine legal and engineering experts. The business is also supported by the former CEO and President of Overseas Shipholding Group, Morten Arntzen, who brings over 30 years of experience in shipping finance.
The business is currently providing 45 facilities financing more than 140 ships and is excited about supporting its clients in the challenges posed by the decarbonisation pathway of the industry.
“We recently completed our third successful transaction with Macquarie. The team is creative and constructive; they understand our strategy and tailor solutions that support our business. We look forward to growing our relationship meaningfully in the years to come,” said Hew Crooks, Chief Financial Officer and Partner at Ridgebury Tankers.