— NRP Maritime Asset Management

Credit funds

Credit Strategy - Premium Maritime Credit Funds

Premium Maritime Credit Fund (“PMCF“) is a Luxembourg domiciled RAIF established to capitalise on the increasing funding gap created by the traditional senior lending banks retracting from the industry. A gap created due to regulatory constraints, enabling the fund to achieve high single digit returns on 1st priority asset-backed lending towards smaller but high-quality shipowners in a liquid market with solid downside protection.

Basel regulations require maritime industry banks to hold significantly more regulatory capital and consequently European banks have drastically reduced their shipping exposure since 2010. With the implementation of Basel IV the availability of traditional bank financing is expected to continue its decline and the cost of loans will go up as equity requirements for banks increase.

Exposure to asset-backed lending to quality shipowners

Our fund provides access to direct ship financing to high quality shipowners, which are currently yielding high single digit returns at 50-60% leverage.

We are an asset focused lender and consequently structure each loan to be sustainable though changing marked environments. With robust asset coverage and by being downside focused we aim to provide our investors favourable risk adjusted returns.
$ 0113
Fund size
Committed capital
$ 043
Invested amount
April 2023
Number of loans
February 2023
Target return
Net to investor

High unlevered return with solid downside protection

As a result of regolatory changes and traditional lenders withdrawing from the maritime sector, we believe there are opportunities to achieve a solid risk-adjusted return within ship financing. We focus on small to medium sized quality shipowners seeking to finance liquid tonnage with a structure that is sustainable regardless of the short term market climate.

Target borrowers
A significant portion of all vessels on water is owned by small & medium sized owners, where most have long track records and solid balance sheets. As traditional bank financing becomes more difficult to obtain, more and more owners are turning to alternative lenders.

Liquid collateral
Within the most liquid shipping segments there are several comparable second hand transactions taking place every week.

Asset coverage
Asset coverage covenant of minimum 150% (67% LTV) with daily value checks.

Flexible loan structures
Amortization schedules, loan-to-value, dividend restrictions, asset coverage covenant, employment requirements etc. are structured on a deal-by-deal basis in order to ensure that the financial structure is sustainable for the borrower in case of softening market conditions.

Client Introduction

NRP Maritime Asset management - Client Introduction
18. August 2023

Contact us

If you have any questions, or want to learn more about our credit strategy, please feel free to contact us.

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