Financial boost for Dutch shipping

Photo: Nesec

The NesecShipping Debt Fund (NSDF), made up of institutional investors and the Province of Groningen, totaling at €250m, will help Dutch shipowners planning to acquire or re-build shot-sea vessels. It is partly backed by a guarantee from the Dutch state.

According to Pieter van der Burg, Managing Director, Nesec, NSDF is an addition to the existing bank credit capacity. It is one of the measures introduced in order to reduce lending activities of banks towards shipowners.

Van der Burg said, "Due to Basel IV capital measures being implemented fully in 2022, banks reduce their long-term ship financing. Ageing vessels and new emission regulations mean the fleet requires renewal. The Nesec Shipping Debt Fund focuses specifically on acquisition of new or existing ships, or modifications to them. For example to comply with new requirements for ballast water, sulphur and other emissions."

Mona Keijzer, the Dutch State Secretary for Economic Affairs and Climate Policy, underscored the importance of the country's maritime sector for its economy, generating an added value of €26bn and responsible for 275k workplaces.

Shipping companies in the Province of Groningen itself make up 75% of all the ships in Northern Netherlands. According to Henk Staghouwer, a Member of Groningen's provincial executive, no less than 112 shot-sea vessels were launched from the northern shipyards between 2012 and 2017. Shipbuilding is an important part of the province's economy, generating a turnover of €1.3bn and 4.3k workplaces.

Parties involved in the NSDF include the Dutch State, the Nederlandse Waterschapsbank, the Province of Groningen and clients of both NN Investment Partners (NNIP) and Waterland Investment Services. Nesec is eyeing the possibility of creation of further funds, focusing, among other things, on maritime and offshore assets, as well as alternative energy sources.