Syndicated loans in shipping under the prism of project financing

Abstract

What we attempt in this thesis is to draw a parallel between the above mentioned framework that exists in syndicated loans in shipping with the equivalent existing in another financing instrument, project finance. We begin by describing the basic characteristics of syndicated loans in order to document the rationale for syndication both from the lenders and borrower’s side. In the next section we refer to project finance and we extensively discuss matters concerning financial structure and risk management. Special characteristics of syndicated loans in shipping and generally shipping business are covered in section 4. In section 5, by combining the previously described characteristics, we attempt a comparison between the two separate financing instruments that lead us to conclusions which are presented in the last section.