Financing Structures & Capital Sources
Private Credit in Maritime Finance
Summary
Private credit providers extend non-public loans or structured capital to shipping borrowers outside traditional syndicated bank channels.
Why this matters in ship finance
Private credit can move quickly or accept unusual risks, but pricing, security and refinancing conditions may be more demanding.
The concept
Transactions range from direct lending to junior secured debt and fund-based facilities. Regulation depends on fund-manager, lending entity, jurisdiction and activity; EU AIFMD rules do not automatically apply to every private loan.
How it is used in practice
Compare effective pricing including fees, prepayment penalties, amortisation, covenants, warrants and exit conditions.
Practical issues
Do not assume private credit is unregulated or universally more flexible than banks; calculate the all-in cost and enforcement pathway.
How ShipFinance.ai uses this concept
Compare private-credit and bank alternatives under identical downside assumptions.
Key takeaways
- Private credit terms are highly bespoke.
- Fees and options matter alongside coupon.
- Lender regulatory status must be established individually.
Primary legal, contractual and/or rule sources
- Directive 2011/61/EU — Alternative Investment Fund Managers Directive, where in scope
- Loan Market Association — loan documentation and sustainable lending guidance; voluntary market standards
- Schinas, Grau & Johns (eds.), HSBA Handbook on Ship Finance (Springer, 2015) — analytical reference, not law