Financing / investing the offshore and maritimeenergy transportation

Ioannis Alexopoulos, Director

.: London .: Athens .: SingaporeEurofin Eurofin S.A. Seafin

Presentation to

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Oldest, largest, specialized ship-financing investment boutique with global coverage 30 Years Committed in Ship-Finance US$15 Billion Ship-Financing Deals (globally) Flexibility Tailor made structures Commitment Team dedicated to ship-financing Strong Relationships Ship-financing Providers / Owners Recognition Representing KfW IPEX-Bank Global Coverage Offices in major shipping centers

LondonAthens

Singapore

Eurofin Group (Overview)

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Asset Values (US$ mm - as at June 2013)

July 2008 June 2013

July 2008 June 2013

July 2008 June 2013

5-Year old Capesize

5-Yr 3,500 Teu vessel

5-Year old Aframax

Dry

Container

Tanker

150

31

~(79%) 5-year Peak: $150m% Change to Current: ~(79%)

65

18.5

~(72%) 5-year Peak: $65m% Change to Current: ~(72%)

79

27

~(66%) 5-year Peak: $79m% Change to Current: ~(66%)

(80%)(74%)(69%)

% Change

Shipping Charter Rates (Indexed - as at Q.2 2013)

Source: Clarkson’s Research, Baltic Exchange

Shipping environment

Freight Rates & Asset values have plummeted

2005

-Q1

2005

-Q2

2005

-Q3

2005

-Q4

2006

-Q1

2006

-Q2

2006

-Q3

2006

-Q4

2007

-Q1

2007

-Q2

2007

-Q3

2007

-Q4

2008

-Q1

2008

-Q2

2008

-Q3

2008

-Q4

2009

-Q1

2009

-Q2

2009

-Q3

2009

-Q4

2010

-Q1

2010

-Q2

2010

-Q3

2010

-Q4

2011

-Q1

2011

-Q2

2011

-Q3

2011

-Q4

2012

-Q1

2012

-Q2

2012

-Q3

2012

-Q4

2013

-Q1

2013

-Q2

0

50

100

150

200TankerBulkerCon-tainer

In all three main shipping sectors

A totally different picture

Increased demand for specialized offshore / energy maritime assets

Coupled with a tight supply of available tonnage

Offshore & Energy Maritime Environment

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LNG – Freight Rates LNG – Newbuilding Prices

Source: RS Platou

The(Traditional – Plain Vanilla) Senior DEBT Ship-Financing

Environment

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Any guesses?

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Ship financing environment: EUROPE

2000 01 02 03 04 05 06 07 08 09 10 11

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30 25.3 24.9 23.6 22.418.9 18.8 18 17.1 15.7 14.4 14 13.5 13.3 11.9 11.9 11.6 10.3 9.6 9.5 8.5 8.1 7.8 7.5 6 5

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INCREASE from 2008

DECREASE from 2008

Source: Marine Money, May 2013

25 Largest Global Shipping Banks Portfolios in Dec 2012: US $347.6 billion (from US $358 billion in 2008)

Reduction in Global Shipping Banks’ Capacity

Senior Debt – GLOBAL Ship-Financing environment

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Are Shipping Banks still there?

Senior Debt – Global Ship-Financing environment

Greek Banks : CLOSED

UK Banks: LIMITED Capacity (if any)

FRENCH Banks: LIMITED Capacity (if any)

GERMAN Banks: SOME Capacity for new deals

Scandinavian / Swiss Banks / US / Australian: (SELECTIVE )

All Re-organizing Balance Sheets / Re-building regulatory capital (BASEL III )

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A (totally) different picture

Senior Debt – Offshore & Energy Maritime

CAPACITY IS THERE

SYNDICATION & CLUB DEALS STRUCTURES ARE AVAILABLE

WIDE RANGE OF DIFFERENT BANKS: (German / US / Swiss / Norwegian / Swedish / Australian)

BENCHMARK ON PRICING AND LEVERAGE (GASLOG)

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CHINESE BANKS

CAPACITY IS NOT AN ISSUE

POLICY BANKS

• China Exim Bank• China Development Bank

ALTERNATIVE Ship-Financing Sources

Filling the gap

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Are they really there?

Chinese Banks

Issues for (NON policy) Chinese Shipping Banks (a) Credit Tightening (to control possible inflation

pressures) (b) HIGH US $ Funding Cost (Scarce Availability)Requirements

(A) Strong Chinese Element: (China Newbuilding / Time Charter to Chinese SOE)

Chinese Newbuilding Requirement is not being met. 11

Not particularly relevant at present

for the Offshore & Energy Maritime

Export Credit Agency (ECA) Ship-Financing Structures

ALTERNATIVE Ship-Financing Sources

Filling the gap

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Competition at a political level

Export Credit Agency (ECA) Structures

GOVERNMENT AGENCIES ASSISTING EXPORT FINANCEJAPAN• NEXI: Nippon Export and Investment Insurance• JBIC: Japan Bank for International Cooperation

KOREA• K-sure: Korea Trade Insurance Corp.• Korea Exim Bank

NORWAY• GIEK: Insurance Agency• Eksportfinans

GERMANY• Euler Hermes • KfW IPEX-Bank

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KfW IPEX-Bank finances Royal Caribbean

German ship financier KfW Ipex led the export credit financing $997 millionfor USA shipowner Royal Caribbean International.

The vessel was ordered from Papenburg-based Meyer Werft.

Competition at a political level

Export Credit Agency (ECA) Structures

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The loan is covered by a government export guarantee administered by credit insurer Euler Hermes.

THENAMARIS SECURED $400 MILLION LOAN FACILITY FOR ITS 3 LNG NB.

Competition at a political level

Export Credit Agency (ECA) Structures

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A $200 million tranche was extended by KEXIM

The remaining $200 million was equally shared between 3 banks; DnB NOR, ABN AMRO and ITF (part of DVB)

Public EquityPublic DebtPrivate Equity

ALTERNATIVE Ship-Financing Sources

Filling the gap

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Public equity helped (if you were public)

Alternative ship financing: Public Equity

Powerful for already listed shipping companies

• Mostly Follow On Offerings to reduce Debt Exposure

Golar:

Equity raised (for Expansion in the LNG , FSRU energy sector) of more than $0.5 Billion in 6 Months •July 2012: 1st Follow-On : $223 Million•November 2012: 2nd Follow-On : $181 Million•February 2013: 3rd Follow-On : $130 Million

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OPEN - for Offshore & Energy Maritime

Alternative ship financing: Public Equity

Golar LNG Partners LP (6-Month)

Attractive alternative to L/T amortising debt

Alternative ship financing: Public Debt

Accommodating for already listed companies• Closed in the heights of the credit crisis, but opened up

quickly from Q2 2009, faster than expected• Non-investment grade bonds• High yields / Convertibles

Good opportunity to diversify• Shipowners: Ability to meet near term liquidity needs and

to improve near term cash flowGaslog announced that it has priced an offering

of NOK 500,000,000 aggregate principal amountof senior unsecured notes due 2018

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OPEN - for Offshore & Energy Maritime

Post 2008 Private Equity Transactions in Shipping

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Alternative ship financing: Private Equity

Source: Tiger Analysis

Offshore & Energy Maritime

Conclusions

TOP ON THE AGENDA[of the Few Remaining Shipping Banks]

DEBT: POSITIVE ELEMENTS [+ve Macros / Demand & Supply Balance / Modern Specialised Assets / Strong Corporates / Long Term Employment with Investment Grade Charterers / possible ECA cover]

CAPITAL MARKETS: AN IMPORTANT ELEMENTHigh Capital Intensive sector; it is necessary to establish a well diversified Capital Structure (with different capital sources).

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U.S. becoming a major LNG exporter

Developments (to watch out for)

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Global impacts of LNG exports from the United States

Detroit said on Friday it would stop making payments on some of its about $18.5 billion debt, ....called on most of its creditors to accept pennies on the dollar

The Global (Financial) state of Affairs

Developments (to watch out for)

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SEC commissioner Dan Gallagher – April 2013

REUTERS – June 2013

$3.7 trillion muni bond market74% of that money came from retail investors.

Thank You

Eurofin Group of Companies

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Ioannis Alexopoulos, Director

.: London .: Athens .: SingaporeEurofin Eurofin S.A. Seafin

11 Neofytou Douka Str., 106 74 Athens, Greece - T: +30.210.3623334 Email: i.alexopoulos@eurofingroup.com

Website: www.eurofingroup.com