The IMF PONTOS Framework
A structured alternative to investing in Shipping
INVESTMENT RATIONALE
The everlasting character of the maritime market in combination with the demand for transportation and the current strive for decent yields on invested funds, provide an extraordinary opportunity for Cash Managers to enter the maritime business.
Significant gains result when exploiting market disruptions: Cyclical Economy, Environmental sensitivity, new Technologies and increasing complexity of new Regulations, force the replacement of ageing fleets creating significant investment opportunities.
Knowledge of the specific market is a plus but not required in order to invest. The ownership of the Vessel remains with the Investor until the end, and it is sufficiently insured against risks and perils. The returns are known upfront and determine the “go-no go” decision.
The Investment Management & Financing PONTOS “one-stop-shop” package deal provides readily available know-how and controlled implementation of the investment life-cycle.
The Investment Management & Financing PONTOS Framework provides investors with an environment of calculated risk and returns, not restricted by the size of their available funds and independent of domestic tax environments.
ENVIRONMENT & SCOPE
INVESTOR
▶ No limitation (*) ▶ Depends on Investor’s appetite, yield expectations and ability to invest
OPERATOR / MANAGER
▶ No limitation (*) ▶ Any type or size of shipping enterprise conditional to be of high standard, reputable and reliable Manager with proven track record. ▶ Recommended initial approach to Greek Maritime environment (**)
VESSEL TYPE
▶ No limitation (*) ▶ The vessel type (Bulk Carrier, Containers, Tanker, GAS, General Cargo, Car Carriers, Passenger, Cruiser, Yachting, Ferries, Other)
GEOGRAPHY
▶ No limitation (*) ▶ International - The Investor, the Manager, the vessel registration, etc. can be anywhere
TYPICAL TRANSACTION STRUCTURE
IMF PONTOS Engagement and Services
▶ An SPV (OwnerCo) is incorporated by the Investor to purchase the vessel agreed with the Manager – Incorporation serviced by IMF PONTOS.
▶ An SPV (ChartererCo) is incorporated by the Manager to charter the vessel from the Investor simultaneously with purchase – Incorporation and monitoring serviced by IMF PONTOS
▶ Preliminary assessment of the opportunity – Serviced by IMF PONTOS
▶ The OwnerCo enters into a Memorandum of Agreement (MOA) for the purchase of the vessel with Sellers. Delivery takes place usually within two to four months, and this period serves to prepare the pertinent documentation and conduct all pre-delivery activities – Coordinated by IMF PONTOS
▶ Simultaneously with MOA execution, OwnerCo enters into a bare boat charterparty with ChartererCo, for the chartering (leasing out) of the vessel on delivery of her to OwnerCo – Serviced by IMF PONTOS
▶ Registration and OwnerCo’s insurance is dealt with by the Investor. Manager’s insurances will be dealt with by the Manager as per Investor’s instructions and will be assigned to the OwnerCo. Throughout the life of the charterparty, Investor will monitor and control the vessel’s compliance to maintenance, physical, regulatory and legal requirements which burden the Manager – Monitoring serviced by IMF PONTOS
THE IMF PONTOS FRAMEWORK
A structured alternative to investing in Shipping
- The Investor assesses and acquires the vessel identified and proposed by the Manager, and charters her to the latter.
- Bare boat charter party has the advantage of not involving the Investor to the maritime business; the Operator / Manager is responsible for vessel operation; Investor owns the vessel and charters her to the Manager (Charterer).
- Investment will be recovered through the charter hires. The Manager advances c. 20% of vessel’s value, to be used by the Investor for acquisition deposit, security and transaction costs.
- Hires will serve as installment payments and structure can be adjusted to the needs of the specific deal. Charter period is three to five years