Reportage on Japanese Shipowners No. 10　第10回ルポルタージュ・日本船主

What constitutes a meaningful off-balance-sheet contract for shipowners

「船主にとって意味のあるオフバランス契約とは」

In late January, at an izakaya near the centre of a mid-sized city in western Japan, a Japanese shipowner who had shared dinner spoke candidly.

“Nowadays, what major shipping companies and European operators bring to Japanese shipowners are almost exclusively shared equity stakes in LNG carriers. If the investment ratio per company is kept below 25 per cent, the borrowing is recorded at the level of the SPC (special purpose company) and does not become debt on the parent’s balance sheet. But is it really acceptable for us to be dealing only in such transactions?”

The Japanese shipowner paused with his beer in hand and stated his view firmly.

(Reportage on Japanese Shipowners reporting team, published every Friday)

(For the continuation, please read the full text in English and Japanese. The Japanese article appears after the English version.)

第10回ルポルタージュ・日本船主

「船主にとって意味のあるオフバランス契約とは」

　1月下旬、西日本の中規模都市の中心地に近い居酒屋。夕食をともにした日本船主が話す。

　「今や海運大手や欧州オペレーターが日本船主に持ち掛けられるのはLNG船の共有持ち分の案件ばかりだ。1社当たりの出資比率を25％以下に抑えればSPC（特定目的会社）の借り入れとなり、本体の借金にはならない。しかし、こんな案件ばかりで果たしていいのか」

　日本船主はビールを飲む手を止め、きっぱりと言う。

（ルポルタージュ・日本船主取材班、毎週金曜日配信）

（続きは英語と日本語で書かれた本文でお読みください。日本語の記事は英文記事に続いて掲載されています）

Reportage on Japanese Shipowners No. 10

What constitutes a substantive off-balance-sheet contract

In late January, at an izakaya near the centre of a mid-sized city in western Japan, a Japanese shipowner who had shared dinner spoke.

“Nowadays, what major shipping companies and European operators bring to Japanese shipowners are almost exclusively shared equity stakes in LNG carriers. If the investment ratio per company is kept below 25 per cent, the borrowing is recorded at the level of the SPC (special purpose company) and does not become debt on the parent’s balance sheet. But is it really acceptable for us to be dealing only in such transactions?”

The Japanese shipowner paused with his beer in hand and stated his view firmly.

(Reportage on Japanese Shipowners reporting team, published every Friday)