Shipping finance and governance

You must answer TWO (2) out of the THREE (3) questions in this section.

Question 3

Mezzanine financing occupies the gap between senior debt and equity. Examine the different financing methods that are used to fill this gap in shipping finance and evaluate the advantages and drawbacks of this financing method.  Your answer must comport two parts. First, you are required to describe mezzanine finance and explain all of its components in the debt and equity categories. Second, you are required to evaluate the advantages and drawbacks of mezzanine financing and what effect they may have on the capital structure. (100 marks)

Question 4

Leverage Buy Out and Venture Capital are commonly used in Shipping Finance. You are required to answer both elements of this question. i) Describe each method of financing and highlight their main characteristics; ii) Discuss their similarities and main differences. (100 marks)

Question 5

This question is about financing new buildings in the shipping sector and the role that banks plays alongside export credit agencies that are supported by Governments in respect of shipyards. You are required to answer both elements of the question. I) Discuss the advantages and disadvantages of new buildings, and ii) examine the role that banks play alongside government to secure finance for new buildings. (100 marks)