The Oil & Gas subsidiary of Caterpillar steps into the financing market. The new instrument »Asset Financial Solutions« is available for merchant shipping owners, too. First projects are already on the way
The product provides 100% financing of new offshore or marine assets. It is planned to enable Caterpillar to offer customers[ds_preview] a tailored solution to optimize their business and expand their fleets without raising additional capital or taking on project construction risk. »Our message is clear: we have a proprietary new financing model that can help our customers succeed and grow despite down cycle market conditions,« Caterpillar manager Antti Ekqvist says. The financing source is available for the complete duration of a customer’s project from the start of construction to post delivery and operation. Assets ideal, but not limited to, for the financing program include jackup and semi-submersible rigs, accommodation units, drillships, liftboats, offshore support vessels and tug boats. But Ekqvist emphasizes, that financing for other segments like container vessels or bulkers is as well explicitly possible – either newbuilding or second hand projects. The only prerequisite which has to be fulfilled is that the vessel needs to get Caterpillar equipment on board.
For 100% financing of an asset, clients need to provide a guarantee which is 25% to 35% of the complete project volume. There is no specific maximum limit. According to Ekqvist the Asset Financial Solution is available above a financial volume of 30mill. $. Repayment terms may range between seven and 15 years.
The feedback from the industry seems to be good. »There are already some projects on the way. We are in talks to German owners as well«, says the manager.
Caterpillar Oil & Gas, Caterpillar Inc.’s oil and gas division with headquarters in Houston, Texas, consolidates all the sales and service activities for Cat oil and gas power solutions. Since the 1930s, Caterpillar has manufactured engines for the oilfield and today provides premier power solutions with outputs from 31 to 16,000 kW.
