HOW DAMEN’S FINANCIAL SERVICES SMOOTH THE WAY TO VESSEL OWNERSHIP
LARGE OR SMALL, ALL PROSPECTIVE SHIP OWNERS HAVE TO ENTER NEGOTIATIONS WITH A SHIPBUILDER AND A BANK WHEN LOOKING TO BUY A SHIP.
Opening communications with Damen’s customer finance team means that there is just one point of contact, however. “We can provide all the financial services required,” begins Damen Finance Manager Stephen Maduro.
“We strive to give clients an indicative quote in terms of pricing and conditions within two working days. We have standardized packages which we use in the majority of cases – the advantage of this is that all parties are familiar with what we can deliver. Not only in the quality of our vessels but also in the quality of our financing.”
Peace of mind
“The start of any project begins with a build contract,” continues Mr Maduro. “Then, in most situations, we insure the contract with the Dutch export credit agency Atradius, an insurer which supports exports on behalf of the Dutch Ministry of Finance.” The funding for this financial set-up comes from an investor, be that a bank or other financial organisation. More often than not, financing the construction of a vessel with Damen is more attractive than when financed directly via a bank. “This has to do with the export credit insurance and because, at the end of the day, we don’t want to make money on financing services. Our incentives lie in the desire to see a client’s the vessel in the water.”
Damen is not unique in offering financial support to its customers. What is unprecedented, though, is the sheer scope and knowledge of the sales organisation that has been providing services to clients for over 40 years says Regional Director Spain Reinier van Herel: “It is this experience that allows us to say to customers: ‘You do what you do best – whether that’s mooring vessels, transporting goods from A to B or operating in remote areas – and we’ll take care of the rest’. Looking at it this way, we do not sell boats. We are assisting customers achieve their goals.”
DAMEN CUSTOMER FINANCE AND P&O REPASA
From the customer’s viewpoint
In Q4 2015, P&O Repasa took delivery of a Fast Supply Vessel named Red Eagle. P&O Repasa uses Red Eagle to transport personnel, fuel, water and equipment to oil platforms off the coast of Equatorial Guinea.
When investigating options to finance the purchase, and to facilitate expansion in the West African region, the company found what it was looking for by talking to Damen’s Customer Finance team. Here, P&O Maritime Group Finance Director Prasad Narayan answers a few questions about the financial aspect of the contract.
How important was it that Damen can offer both shipbuilding and finance experience?
We have a long standing relationship with Damen on the ship-building front. Now we have added another facet to that relationship by utilising their financing option. This added value from Damen was helpful to P&O Repasa as it provided a single window for vessel procurement.
Does working with Damen’s Customer Finance team streamline the financing process?
The documentation and direct access to their Customer Finance team, in particular Stephen Maduro, worked well for us in terms of meeting the timelines and sorting out issues. The turnaround from their team was quick.
How does Damen’s finance support fit in with P&O Repasa’s plans for future growth?
Damen offers attractive interest rates which are comparable to bank finance. The company offers good vessel financing options at market rates. This supports our overall strategy to provide superior customer service at competitive prices.
How close was your relationship with the Damen Customer Finance team?
The Damen Customer Finance Team was professional in their approach. They supported our internal finance team throughout the vessel acquisition, were in constant communications with their sales team and were proactive and solution-oriented, which streamlined the acquisition process.
Did you know?
That Damen’s Customer Finance facilitated the financing over 60 vessels in 2015. Supporting clients to the tune of over € 500 million.