Bimco cemented its move into[ds_preview] the domain of ship financing with a standard term sheet for use in ship financing transactions.
The term sheet has been drafted as a »short and simple« standard for term loan facilities. It has been prepared in the BIMCO format, but is indicative and non-binding.
Bimco sees this as an important tool for shipowners, banks and lawyers and hopes it will be particularly useful for small and medium-sized companies, who may not have a lot of experience with such deals. It is expected that all parties involved will save time and money.
»It is only natural that its documentary activities also cover ship financing – an issue which has become increasingly important and challenging over the years«
Bimco President Philippe Louis-Dreyfus
A sounding board was set up to comment on the draft. It consisted of more than 50 representatives of banks, shipowners and lawyers. They received the draft twice during the process and returned a substantial number of comments and drafting proposals.
The term sheet has been developed by a subcommittee composed of representatives of the following five banks, five shipping companies and three law firms:
- Citibank
- Deutsche Bank
- HSBC
- Industrial and Commercial Bank of China
- INGEPAR
- BW Maritime
- Compagnie Maritime Belge
- Dampskibsselskabet NORDEN
- Klaveness Chartering
- Louis Dreyfus Armateurs
- Hannaford Turner
- Linklaters
- Watson Farley & Williams.
The term sheet will be published in early 2017.
Bimco is the world’s largest international shipping association, with 2,200 members in around 130 countries.
