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Shipping Finance – Important deal 2016

In 2016, DVB closed a deal with IVS Bulk Pte Ltd (IVS Bulk), a subsidiary of Grindrod Shipping Pte Ltd, established in 2013. On the back of our marketing efforts since 2008, we have established an active and engaging relationship with Grindrod Shipping since our first ship finance deal for a fleet of tanker and dry bulk vessels in 2011. We closed our first deal with IVS Bulk in 2014 for six of the twelve newbuildings. With the lowest dry bulk markets, the follow-on deal with existing club banks for the remaining six newbuildings did not materialise at that time.

Given the relationship established with Grindrod over the years and our commitment to support the company’s shipping ventures, we were asked to assist in structuring a deal for their remaining Supramax and Handysize vessels. Together with the client, we arranged a conservatively structured finance package as back-stop finance for the state-of-the-art newbuildings. The deal was syndicated in close cooperation with our Financial Institutions and Syndications team.

Despite challenging markets, DVB was able to successfully syndicate the remaining commitment to a European and Japanese lender. Grindrod Shipping was very appreciative of our continuous support, providing structured services at times when other lenders were withdrawing from dry bulk deals – even for their relationship.

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