Financing after Basel III FD Seminar 27 November 2014
Jul 08, 2015
Financing after Basel IIIFD Seminar 27 November 2014
Impact of Basel III
2
Basel II and Basel III comparison
3
Financial crisis – key dates
9 August 2007: BNP Paribas suspends repayment of 2 subprime funds
16 March 2008: JPMorgan buys BearStearns for USD 2
14 September 2008: BoA buys Merrill Lynch for USD 1
15 September 2008: the downfall of Lehman Brothers stock market loses 30%
25 September 2008: NL opportunistically takes over the Dutch part of Fortis-ABN (‘Revenge of the Dutch’)
5 October 2008: BNPP buys Fortis and Belgian takes 20% of BNPP (share price at EUR 35)
10 May 2010: The ECB buys Greek debt on the 2nd market for the first time (European Financial Stability Facility)
14 November 2008: Europe enters into recession
9 March 2009: lowest stock market in 10 years (S&P was 676pts and now ~1400pts)
5 November 2009: Greek crisis. New government announces the lies of the previous government
April 2010: rates rise to 12% and GR receives EUR 110 billion from EU
21 November 2010: Ireland asks for help (85 billion)
6 April 2011: Portugal asks for help (78 billion)
25 June 2012: Spain asks for help (more than 100 billion)
4
Size of the shipping loan market
5
Average margins vs CDS spread
6
Margin Euronav loans
0.00 %
0.40 %
0.80 %
1.20 %
1.60 %
2.00 %
2.40 %
2.80 %
3.20 %
3.60 %
4.00 %
2005/q1 2005/q1 2008/q3 2008/q3 2010/q1 2012/q1 2013/q1 2013/q2 2014/q1
Margin % evolution on loan facilities
Margin
7
Leverage (loan to value)
40.00 %
50.00 %
60.00 %
70.00 %
80.00 %
90.00 %
100.00 %
2005/q1 2005/q1 2008/q2 2008/q3 2008/q3 2008/q3 2009/q2 2012/q2 2012/q1 2013/q1 2013/q2 2014/q1 2014/q4
LTV - Loan to Value
LTV
Maersk Acquisition 5 January 2014
9
Major Acquisition 5 January 2014
Acquisition of 15 VLCCs (Very Large Crude Carriers)
Total acquisition price: USD 980 million
USD 500 million bank debt
• Secured
• Leverage: 50%
• 6-year maturity
• Margin 2.75%
USD 235 million bond
• Fixed rate 5.95%
• 7-year maturity
USD 350 million equity
• Private placement
FINANCING
Acquisition 4 additional VLCC vessels from Maersk
11
Acquisition four additional VLCC vessels from Maersk
4 additional Japanese built VLCCs
Total acquisition price: USD 342 million
USD 215 million bank debt
• Leverage: 60%
• 7-year maturity
• Margin 2.25%
USD 125 million equity
• Accelerated book building
FINANCING
Innovative ways to raise capital
13
Innovative ways to raise capital
Equity
PCP’s
Convertible bonds
Mezzanine-financing
Baby bonds (unrated)
High yield unsecured bonds (rated)
Bank financing