Over 20 years’ experience in international structured asset finance, the last 10 years being almost exclusively focused on the shipping sector.
Gained early experience in tax based leasing with HSBC, managing a portfolio of big ticket facilities with customers such as British Airways, Inmarsat, Nissan, Exxon, General Electric, Shell, and involved in a range of diverse capital assets’ financings including oil refineries, satellites, commercial jetliners, shipping and production plant.
Joined Price Waterhouse to help establish an in-house lease arranging and advisory unit, and worked on a number of high profile engagements including, arrangement of tax-leveraged sale and leasebacks on gas platforms, placement of the UK’s first commercial paper conduit financing on secondary property rents, and acted as principal adviser to the UK government in matters relating to privatisation of rolling stock leasing companies.
With Barclays and Barclays Capital, originated a portfolio of tax based leases for UK and international clients, predominantly in the shipping sector. Amongst clients were Orient Overseas, Evergreen, CMA CGM, Jo Tankers, SK Shipping, National Rail and Mitsui Rail Capital. Leases for 20+ years produced significant present value benefits (c. 10% of capital cost, on average) from tax deferral and employed various structural approaches including limited partnership lessors. Structured the bank’s first USD denominated UK tax lease, and completed a transaction with a South Korean counterparty that incorporated a zero risk-weighted security package.
At National Australia Bank a series of large ticket shipping leases were concluded with an international client base, some using tax leverage, others relying on the residual value of the vessels in question. Most notable of the “asset based” transactions was the acquisition of a large chemical tanker, and its subsequent bareboat charter to a major operator where the bank accepted residual value risk on the tanker at the end of the lease. Also a deadlocked JV with a Japanese bank to provide operating leases to Transport for London on 54 over ground train units.
In 2010 chaired a panel discussion on oil and gas supply vessel prospects at the Marine Money Offshore Finance conference in Oslo.
Kevin Swannack