HANSA talks to Hugo Modderman, Managing Director of financial service provider Dolfinance, about financing instruments and details for the cruise industry
Do you see any capital shift from merchant shipping to the cruise/ferry sector due to the crisis in[ds_preview] merchant shipping?
Hugo Modderman: Yes a bit.
Do you think that there is any risk of over capacity in the cruise sector in the near future as well?
Modderman: No the market can absorb the newbuildings, especially with increasing demand from China. Furthermore the expedition cruise fleet urgently needs renewal.
Is the leasing model of the container shipping sector as well used in the cruise sector?
Modderman: Assuming you mean leasing from a fund to a shipowner: Not really. It has existed on a small scale and looks to remain small. However some large leasing companies have shown an appetite for cruise deals and offshore deals. These institutions seem less interested in merchant shipping.
What are the most common ways for ship financing in the cruise sector?
Modderman: Export credit is vital and the large companies finance their growth by bond issues.
Do you see any changes in this respect now or in the near future?
Modderman: As the cost of bonds has declined the cruise companies have started to favour these, especially in the USA.
Where does the capital for the cruise industry come from?
Modderman: From the bond market, mostly US investors and increasingly from private equity.
Are institutional investors involved as well?
Modderman: In bonds yes, in listed shares yes, in private companies, no.
Do you plan to step more into merchant shipping segments?
Modderman: No, we have been involved in tankers, containerships, drybulk, LPG, offshore etc. in the past but we believe that for a small company as we are it is better to focus on niches where we have superior knowledge to our competitors and where we see a growing market. We may however develop our offshore wind energy finance side.
