Funding in shipbuilding industry: credit facilities and debt instruments to finance the vessels’ construction

Abstract

After a brief introduction, the first chapter of the Master Thesis is dedicated to the description of the shipbuilding industry. More precisely it includes an overview of the products and the characteristics of the industry, an analysis of the key variables which influence the demand and the supply of the market and the most significant market trends. In particular, the European situation is minutely examined throughout a SWOT analysis. In the final part of the chapter is introduced the European shipbuilding leader Fincantieri, its activities and its main competitors. In the second chapter, the first part is dedicated to the explanation of origin of the shipbuilding companies’ credit issue and the rule of the financial planner in the determination of the financial needs. Afterwards are discussed and analyzed the principal short term credit facilities used by a shipbuilding company to fund its relevant working capital. In particular, for each product, after an introducing description, the Thesis includes information about the contract and the issuing process and some data about the market evolution. The credit instruments analysis continues in the third chapter, in which are discussed the common medium and long term credit facilities, such as the revolving credit facilities and the term loans, but also other innovative products, such as Schuldschein. Finally, the conclusion of the Master Thesis highlights the key market trends arising from the previous chapters.