Prudent Wraps Fundraising At $45 Million

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Singapore-based Prudent Shipping Investments (Prudent),has closed financing for two modern Supramax bulk carriers valued at $45 million, says an article published on Infra Economictimes.

Attractive cost of finance

The senior debt was provided by a blue-chip Japanese financial institution, which is relationship driven and highly selective in choosing their business partner.

A very attractive cost of finance was achieved for the borrower, a Singapore based mid-size ship owner.

Prudent acted as the exclusive arranger in this deal on behalf of the borrower.

Tranche transactions

Since starting operations in early 2017, Prudent has arranged $630 million of financing via senior debt and lease structure for owners based in Singapore, India. , Middle East, UK, Denmark, and the US.

In addition, Prudent has also arranged six equity and mezzanine tranche transactions and acted as an advisor on one M&A deal.

Acquisition strategy execution

“While arrangement fees help pay our bills, what is more heart warming is that we have been able to act as catalysts for our clients’ vessel acquisition strategy execution, helping them build fleets of bulk carriers, product tankers and feeder container vessels in the last few years when asset values were low,” said Divay Goel, the Chief Investment Officer of Prudent.

Cyclical industry

“While the past few years have been good, we are always guarded about the future and would never like to forget that shipping is a cyclical industry.Increase in Libor and softening earnings could present a scenario of testing times. It would be prudent to tighten belts before-hand. We ourselves remain highly cognizant of keeping overheads low,  to be always ready to sustain low business periods and to also not get desperate to suggest clients to acquire assets just to further our business,” Goel added.

Structuring deals

Prudent works with a close, fixed set of institutional investors with whom it it has developed a relationship of trust over several years of material Relationship.

Prudent’s services include structuring deals, due diligence, and assessment of technical,operational, and commercial parameters,including aspects of vessel valuation/condition survey, insurances, and projections of earnings, operating expenses and residual value.

Ports investments

Divay Goel has arranged capital and advised on more than 250 shipping and ports investments in his 32-year career, including for Goldman Sachs,JP Morgan, Carlyle, Blackstone 3i, IFC/World Bank and GIC.

Concept of electronic trading

He was recently chosen by BIMCO as a member of the SHIPLEASE sounding board, advising on BIMCO’s new standard sale and leaseback term sheet.

He was also a core member of the team at the Baltic Exchange in London , which developed the concept of electronic trading of Forward Freight Agreements or FFA’s.

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Source: Infra Economictimes

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