Petrofin

Key Developments and Growth in Greek Ship-Finance
May 2018
By Ted Petropoulos, Head, Petrofin Research.
Petrofin Bank Research© presents, for the 17th year running, an overview and an in-depth analysis of
the bank loan portfolios to Greek shipping, as of 31st December 2017.
Petrofin wish to thank all participating banks for their steadfast support, without which this research would
not have been possible.
The portfolios show both the shipping loans outstanding, as well as loans committed but undrawn. The
committed but undrawn loans may be viewed as an indication of each bank’s ship lending momentum and
/ or the extent of its involvement in newbuilding finance.
Contents
1. Main Findings p. 2
2. Petrofin Index of Greek ship finance p. 3
3. Total Greek shipfinance portfolio as of end 2017 p. 5
4. Research and Analysis

A. The Greek shipfinance market as of end 2017 p. 7
B. Analysis of the 3 Bank Groups p. 14
C. Newbuilding finance research p. 27
D. The Greek Shipping Syndications market p. 28
5. The outlook for 2018 and beyond p. 29
1 Petrofin Bank Research© - www.petrofin.gr

May 2018
1. Main findings
Highlight points of this year’s results for Greek ship finance are as follows:
 Bank shipfinance into Greek shipping has further contracted during 2017 by 5.62%,
compared to a previous contraction of 8.77% during 2016. This should be seen in the light of the increase of
the Greek fleet by 25,276,695 tons DWT to 387,210,742, from 361,934,047 in 2016: an increase of 7%.
 The 2017 research supports the evident retrenchment of traditional bank finance as a
source of finance.
 The overall Greek loans (drawn and committed but undrawn) booked both in Greece and
worldwide as of 31/12/ 2017 fell to $53,994.96 from $57,211.35m in 2016
 . The Petrofin Index for Greek Shipfinance, which commenced at 100 in 2001, fell from 346
to 327.
 Specifically, Drawn loans are down by 3.69% compared to 5.34% last year. Also,
Commitments have fallen markedly by 30.63% compared to a drop of 38% in 2016. This confirms the
underlying contraction of bank ship finance, as well as a switch to to other forms of finance (Funds, Chinese
Leasing, etc), which are rapidly expanding. Please see Conclusions.
 Contrary to the overall results, it should be noted that the Greek Bank group is the only
group that shows growth. 4 out of 5 banks show growth, compared to 2 out of 5 last year. Eurobank is up
by 24.21%, Alpha by 1.6%, NBG by 2.51% and Piraeus by 2.51% (excluding ferries). The overall Greek bank
exposure is up by 4.25%. Greek banks’ share of Greek ship finance has gone up to 16.84% compared to
15.25% last year and 14.63% in 2015. This is a resilient performance by Greek banks despite continuing
domestic problems and underlines the commitment of Greek banks to shipping.
 International banks WITH a Greek presence continued to reduce their exposure, in 2017, by
10.52%, compared to a reduction of -11.49% in 2016, - 9.7% in 2015, -4.23% in 2014, -9.35% in 2013
and -3.9% in 2012.
 The International Banks WITHOUT a Greek presence also showed a decline for the second
year in a row at -4.34%.
 The number of banks involved in Greek shipfinance remains at 51, with a small internal
reshuffle. Bremer’s portfolio has been taken over by Nord LB and Amsterdam Trade Bank has been added
for the first time.
 Credit Suisse remains in the top position with a slightly reduced exposure by -4.17%.
 The top 10 Greek ship financing banks, although they have collectively reduced their loan
portfolios, saw their share of the total going up up to 56.17% from 55.19% last year, as the whole portfolio
has fallen.
 European banks still account for the vast majority of total loans at 78.70%, although their
share is steadily dropping – it was 81.04% in 2016. For the year 2015, they held 81.23% of the total Greek
portfolio, compared to 85.44% in 2014 and 90% the year before.
 The Lead Managers are down by 29.32% compared to last year’s increase of 13.87%.
 Forward commitments, which by definition show the position of trust in the future of
Greek shipping, are down from $3.55bn to $2.4bn. However, the forward commitments to newbuildings
are up by 2%, which underlines the emphasis by banks into newbuildings as opposed to second hand
vessels.
 In conclusion, traditional bank finance, especially among Western banks, continues its
steady decline. Howevewr, bank finance continues to be the main source of ship finance.

May 2018
2. Petrofin Index of Greek ship finance
The Petrofin Index for Greek ship finance published by Petrofin Research © is down by 26% from its peak of
443 in 2008 based on an index of 100 from 2001.
Graph 1
500
450 443
400 405 405 409

401 398
387 379
372
350 346
300 327
281
250
218
200 196
The growth shown by Far Eastern banks (Petrofin Bank Research – www.petrofin.gr) is not yet
fully offsetting
150
the overall need
155of financing the Greek fleet. The Greek banks are feeling the brunt
129
100 100
50
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Petrofin Bank Research© - as of end 2017, May 2018
Some of the biggest lenders are rapidly exiting (Royal Bank of Scotland) or have already exited
(Commerzbank) with others (Deutsche Bank, HSH and others) rapidly selling off loan portfolios. Chinese
bank lending has not grown comparably to the much more aggressive Chinese Leasing, which is not
included in our research. We acknowledge that as Chinese leasing companies rely on Chinese bank loans, it
is not clear what percentage of lending to Chinese leasing by Chinese banks is reflected in Chinese bank
lending, due to classification issues. Most European banks held back during 2017 in order to address their
bad loans and/or assign them to special departments and/or await their sale to funds. As more portfolios
entered the for-sale market, it is expected that there will be a delay in their off loading. However, bank
activity in the 1st quarter of 2018 has picked up among non contracting banks and it will be interesting to
compare next year’s results to this year’s impressive lows.
Having said that, it is expected that the difficult bank finance conditions that apply especially to small and
medium Greek owners, will persist for the foreseeable future and until fresh lenders who will target this
sector will appear.

May 2018
We also compared the Petrofin Index of Greek ship finance with the evolution of the Greek fleet DWT
tonnage.
Graph 2
500 500
450 450
443
405 405 409

400 401 398 400
387
379
372
350 346 350
327
300 300
281
256
250 250
240
218 217
200 196 201 200
186
170 175
155 157 160
150 147 150
138
129 128
122 117
110 113
100 100 100
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Greek fleet DWT Petrofin Index of Greek ship finance
The lack of availability in bank finance has not, thus far, curbed at all the growth of the Greek fleet. The rise
of other forms of finance which are directly competing for loans to medium to large owners, have
diversified the onwers’ field of choices in a very sophisticated and attractive way, but more expensive.
Thus, Chinese leasing, Export Finance, Private Equity Funds, etc, are permitting for the actual growth and
diversification of the fleet itself, although the overall cost of finance from these is higher than traditional
bank loans.

May 2018
3. Total Greek shipfinance portfolio as of end 2017
Petrofin Bank Research ©
The annual results by Petrofin Bank Research ©, now released for the 17th year running, reflect the
exposure of all banks engaged in lending to Greek owners, at the end of 2017.
In Table 1 below, we cite the development of Greek ship finance over the last 16 years.
Table 1
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Dec 2011 Dec 2012 Decr 2013 Dec 2014
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2015 2016 2017
Growth %
28.66% 20.19% 26.61% 11.62% 28.45% 44.31% 9.39% -8.478% -1.17% 2.20% -2.83% -6.51% 4.1% -2.04% -8.77% -5.62%
Total Greek Shipping
Portfolio
$16,525m $21,261m $25,554m 32,353m $36,112m $46,387m $66,941m $73,228m $67,020m $66,235 $67,694 $65,780 $61,498 $64,019.47 $62,712 $57,211 $53,995
Petrofin Bank Research © - May 2018
The downward trend is continuing as exposure to Greek shipping has dropped by a further 5.62%. The level
of bank exposure approaches that of 2006.

May 2018
Graph 3: All banks ranked in terms of their Greek portfolios (in US$m):
May 2018 All banks financing Greek shipping – ranked Petrofin Bank Research ©
portfolios in US$m
Credit Suisse* $5,800 $400 $6,200

DVB $4,289 $19 $4,308
BNP Paribas $2,400 $400 $2,800
Piraeus Bank ^ $2,750 $2,750
Citi $2,200 $500 $2,700
HSBC* $2,500 $2,500
National Bank of Greece $2,302 $125 $2,428
ABN AMRO $2,220 $130 $2,350
Alpha Bank $2,100 $125 $2,225
ING $1,630 $439 $2,069
HSH Nordbank * $1,850 $100 $1,950
DNB $1,560 $49 $1,609
CHINA EXIM ° * $1,600 $1,600
Eurobank $1,470 $54 $1,524
Royal Bank of Scotland~ $1,500 $1,500
Nordea $1,304 $89 $1,393
KEXIM* $1,300 $1,300
Unicredit $1,000 $100 $1,100
Total number of banks lending to Greek shipping, as
DB - Deutsche Shipping* $1,000 $1,000
of end 2017: 51 (Same as last year’s)
KFW $663 $278 Total exposure to Greek shipping, as of end 2017: $941
Nord LB $710 $53,994.96 (Last year’s total: $57,211.35) $710
Calyon* $650 Petrofin Bank Research© - May 2018 $650
China Everbright Bank ° * $600 $600
China Development Bank ° * $400 $400
CIT Maritime Finance* $350 $350
Qatar National Bank* $200 $200
Barwa Bank* $200 $200
NIBC $200 $200
Aegean Baltic $163 $2 $164
Amsterdam Trade Bank $117 $32 $149
OTHER BANKS (21) $6,125 $0 $6.125
$0.00 $1,000.00 $2,000.00 $3,000.00 $4,000.00 $5,000.00 $6,000.00 $7,000.00
Drawn Loans Committed but Undrawn Loans

* Market estimate ° Chinese bank finance excluding Ship Leasing ^ Excluding ferries ~Withdrawing from shipping
Credit Suisse* stands at the top for the third year running.

May 2018
4. Research and Analysis
A. The Greek shipfinance market as of end 2017
Graph 4: Bank exposure in terms of bank groups is as follows:
May 2018
Greek shipping bank portfolios since 2001 – per bank group
in $m
Petrofin Bank Research ©
$38,984
$40,000
$36,777
$35,882 $35,290
$34,040 $33,914
$35,000
$30,537
$29,441
$30,000 $27,104
$24,252 $26,435
$25,000 $23,759 $24,501
$19,540
$20,231 $23,437
$19,161
$20,000 $17,887 $23,990
$15,840 $16,141
$15,884
$14,517 $21,467
$13,939 $17,300
$15,000 $14,469 $12,705
$14,788 $16,944
$14,102 $10,487 $10,819 $9,091
$10,125
$12,070 $9,173 $8,721
$10,000 $8,185
$10,049
$14,061
$7,050 $9,788
$8,604 $7,347
$6,165
$5,000 $5,642 $6,344 $6,523
$3,310 $4,472
$0
Greek Banks International Banks WITHOUT a Greek presence Inernational Banks WITH a Greek presence
Greek banks are up for the first time in 2 years. The other two groups continue their downward trend. It
should be noted that it is the International Banks with a Greek presence that display the largest
consolidation, no doubt influenced by the continuous Greek economic problems. As such, International
banks without a Greek presence have for the last years surpassed the International Banks with a Greek
presence. It is anticipated that this trend shall continue.

May 2018
International Banks International Banks
Greek
8
Total WITHOUT a Greek WITH a Greek
banks
presence presence
$53,994.96 $9,091.03 $23,436.89 $21,467.04 as of end 2017
$57,211.65 $8,720.65 $24,501.00 $23,990.00 as of end 2016
$62,711.50 $9,172.91 $26,434.59 $27,104.00 as of end 2015
$64,019.47 $10,819.2 $23,759.43 $29,440.88 as of end 2014
$61,497.51 $10,486.9 $20,268.03 $30,742.57 as of end 2013

well as for the three bank groups:
$65,780.26 $12,704.5 $19,161.35 $33,914.38 as of end 2012

Overall Greek ship lending portfolios
$67,694.36 $14,517.1 $17,886.81 $35,290.47 as of end 2011
$66,234.65 $15,883.6 $14,468.76 $35,882.29 as of end 2010

between December 2016
-5.62% 4.25% -4.34% -10.52%
Overall decline with the exception of Greek banks.

and December 2017
-8.77% -4.93% -7.31% -11.49%
and December 2016
Table 2: Overall Growth in Greek Ship lending (in US$m)
May 2018
-2.04% -15.22% 11.26% -7.94%
and December 2015
4.10% 3.17% 17.23% -4.23%
and December 2014
-6.51% -17.46% 5.78% -9.35%
Petrofin Bank Research© - www.petrofin.gr

and December 2013
-2.83% -12.49% 7.13% -3.90%

and December 2012
2.20% -8.60% 23.62% -1.65%
and December 2011
-1.17% -1.59% 2.60% -2.43%
Percentage of growth
and December 2010

2017
226.75%
174.65%
280.16%
204.50%
246.21%)
297.42%)
and 2016:
and 2016:
between
2001 and
December
December
(Between 2001
(Between 2001
(Between 2001
(Between 2001
and 2016: 163%)

and 2016: 240%)
In the table below (Table 2) we observe the overall growth evolution in Greek ship lending as a whole as
7.68%
6.52%
8.70%
7.21%
yearly
growth
2001 and
2001 and
2001 and
2001 and
Average
(Between
(Between
(Between
(Between
since 2001
2016: 8.63%)
2016: 6.67%)
2016: 9.64%)
2016: 8.51%)
Table 3: Growth in Drawn portfolios and Committed and Undrawn portfolios (in US$m)
Drawn portfolios Commited but undrawn portfolios

as of as of as of as of as of as of as of as of as of as of as of as of as of as of
% of
end end end end end end end end end end end end end end % of change
change
2017 2016 2015 2014 2013 2012 2011 2017 2016 2015 2014 2013 2012 2011
2017:-5.9% 2017: -49%

International Banks WITH a
2016: -15.41% 2016: 44.5%

Greek presence
2015: -6.43% 2015:-25.1%

$20,169.00
$21,425.02
$25,329.00
$27,069.74
$28,466.88
$31,160.23
$31,620.25
$1,298.04
$2,564.68
$1,774.58
$2,371.13
$2,275.64
$2,754.15
$3,670.22
2014: -4.91% 2014:4.2%
2013: -8.7% 2013:-17.4%
2012: -1.45% 2012:-25%
2011: -0.31% 2011: -11.8%
2017: -4.33% 2017:-4.52%

International Banks WITHOUT a
2016:6.24% 2016:-71.8%
Greek presence
2015:6.28% 2015:43.18%
$22,198.55
$23,204.00
$21,840.86
$20,550.98
$17,623.00
$16,536.00
$15,334.69
$1,238.34
$1,297.00
$4,593.73
$3,208.45
$2,645.00
$2,625.00
$2,552.12
2014:16.6% 2014:21.3%
2013:6.57% 2013:+0.76%
2012:7.83% 2012:+2.86%
2011:31.5% 2011:-9.52%
2017:3.54% 2017:26.69%
2016: -5.1% 2016: 1.72%

Greek banks
2015: -13.9% 2015:-47.4%

$10,377.66
$10,309.76
$12,318.23
$13,624.62
$8,784.95
$8,484.65
$8,941.00
$306.08
$236.00
$232.00
$441.50
$177.15
$386.30
$892.46
2014:0.66% 2014:-149%
2013:-16.3% 2013:-54.1%
2012: -9.59% 2012:-56.7%
2011: -0.66% 2011:-58.8%
2017:-3.7% 2017:-30.6%
2016:-5.3% 2016:-39.8%
2015:-3.3% 2015: 9.62%

$51,152.50
$53,113.67
$56,110.86
$57,998.38
$56,399.64
$60,014.46
$60,579.55
$2,842.46
$4,097.68
$6,600.31
$6,021.08
$5,097.79
$5,765.45
$7,114.80
Total 2014:2.83% 2014:-18.1%
2013:-6.1% 2013:-14.9%
2012:-0.9% 2012: -19%
2011: +6.13 2011:-22.3%
In terms of Drawn and Committed but Undrawn portfolios, there are a number of significant developments:
1. The International Banks with a Greek presence annulled their 44.5% Commitment growth of last
year and, furthermore, reduced it by 49%.
2. For the first time in recent years, International Banks without a Greek presence have drawn less
loans than the year before.
3. Greek bank commitments have jumped by 26.7%, a total reversal of their lending strategy in 7
years.

May 2018
Table 4: Bank ranking – in US$m
Greek shipping portfolios as of end 2017

Rank Bank Drawn Committed but Undrawn Total
1 Credit Suisse* $5,800.00 $400.00 $6,200.00
2 DVB $4,289.00 $19.00 $4,308.00
3 BNP Paribas $2,400.00 $400.00 $2,800.00
4 Piraeus Bank ^ $2,750.00 $0.00 $2,750.00
5 Citi $2,200.00 $500.00 $2,700.00
6 HSBC* $2,500.00 $0.00 $2,500.00
7 National Bank of Greece $2,302.40 $125.20 $2,427.60
8 ABN AMRO $2,220.00 $130.04 $2,350.04
9 Alpha Bank $2,100.00 $125.00 $2,225.00
10 ING $1,630.00 $439.00 $2,069.00
*
11 HSH Nordbank $1,850.00 $100.00 $1,950.00
12 DNB $1,560.00 $49.00 $1,609.00
13 CHINA EXIM ° * $1,600.00 $0.00 $1,600.00
14 Eurobank $1,470.00 $54.00 $1,524.00
15 Royal Bank of Scotland~ $1,500.00 $0.00 $1,500.00
16 Nordea $1,304.00 $89.00 $1,393.00
17 KEXIM* $1,300.00 $0.00 $1,300.00
18 Unicredit $1,000.00 $100.00 $1,100.00
19 DB - Deutsche Shipping* $1,000.00 $0.00 $1,000.00
20 KFW $662.80 $278.34 $941.14
21 Nord LB $710.00 $0.00 $710.00
22 Calyon* $650.00 $0.00 $650.00
23 China Everbright Bank ° * $600.00 $0.00 $600.00
24 China Development Bank ° * $400.00 $0.00 $400.00
25 CIT Maritime Finance* $350.00 $0.00 $350.00
26 Qatar National Bank* $200.00 $0.00 $200.00
27 Barwa Bank* $200.00 $0.00 $200.00
28 NIBC $200.00 $0.00 $200.00
29 Aegean Baltic $162.55 $1.88 $164.43
30 Amsterdam Trade Bank $116.75 $32.00 $148.75
OTHER BANKS (21) $6,125.00 $0.00 $6,125.00

Total Greek portfolio $51,152.5 $2,842.5 $53,994.96
Overall number of banks 51
* Market estimate ^ Excluding ferries ~Withdrawing from shipping
° Chinese bank finance excluding Ship Leasing finance

May 2018
The top 10 banks’ ranking order follows in Table 5.
Table 5: Top ten banks ranked by portfolio size (in US$m) – last 4 years
As of end 2017 As of end 2016 As of end 2015 As of end 2014

Market Market Market Market
Total Total Total Total
share % share % share % share %
Rank Bank exposure Bank exposure Bank exposure Bank exposure
of Greek of Greek of Greek of Greek
in $m in $m in $m in $m
portfolio portfolio portfolio portfolio
Credit Royal
Credit Credit
1 $6,200 11.48% $6,470 11.31% Suisse $6,720 10.72% Bank of $7,600 11.87%
Suisse* Suisse*
* Scotland
Royal
Bank
Credit
2 DVB $4,308 7.98% DVB $4,310 7.53% of $5,200 8.29% $5,919 9.25%
Suisse*
Scotla
nd
Royal
BNP Bank of
3 $2,800 5.19% $3,000 5.24% DVB $4,542 7.24% DVB $4,547 7.10%
Paribas Scotlan
d~*
Piraeu
Piraeus Piraeus
4 $2,750 5.09% HSBC* $3,000 5.24% s $3,000 4.78% $3,850 6.01%
Bank ^ Bank
Bank
Nation
al
National
Piraeus Bank
5 Citi $2,700 5.00% $2,730 4.77% $2,640 4.21% Bank of $2,933 4.58%
Bank ^ of
Greece
Greec
e
HSH
ABN
6 HSBC* $2,500 4.63% $2,525 4.41% DNB $2,341 3.73% Nordban $2,568 3.12%
AMRO
k
National HSH
Citiban Commer
7 Bank of $2,428 4.50% $2,500 4.37% Nordb $2,340.7 3.73% $2,500 4.01%
k 1* zbank**
Greece ank
ABN BNP CHINA Alpha

8 $2,350 4.35% $2,481 4.34% $2,300 3.67% $2,420 3.91%
AMRO Paribas EXIM* Bank
Nationa
BNP
Alpha l Bank
9 $2,225 4.12% $2,368 4.14% Pariba $2,220 3.54% DNB $2,310 3.78%
Bank of
s
Greece
DB -
Deutsch
Alpha Citiba
10 ING $2,069 3.83% $2,190 3.83% $2,200 3.51% e $2,000 3.61%
Bank nk
Shipping
*
Totals $30,330 56.17% $31,580 55.19% Totals $33,504 53.43% Totals $36,647 57.24%
* Market estimate ^ Excluding ferries
BNP Paribas has reached the third place for the first time and Piraeus bank is retaining its either 4th or 5th
position over the last 4 years. HSH Nordbank and DNB are now outside the top 10. ING appear for the first
time in the top 10.

May 2018
Nationality of banks
Table 6: Distribution of banks engaged in Greek Ship-finance by nationality:
Total Portfolios per Percentage of share

Nationality end 2012 end 2013 end 2014 end 2015 end 2016 end 2017
Geographical region of Greek ship finance
2017: $4,000 2017: 7.41%
2016: $6,000 2016: 10.49%
UK & Ireland 5 4 4 3 2 2 2015: $7,210 2015: 11.5%
2014: $9,933 2014: 15.52%
2013: $11,029 2013: 17.93%
2017: $3,550 2017: 6.57%
2016: $3,331 2016: 5.82%
France / Belgium 5 5 5 4 3 3 2015: $3,145 2015: 5.02%
2014: $3,005 2014: 4.69%
2013: $3,065 2013: 4.98%
2017: $4,027 2017: 7.46%
2016: $4,864 2016: 8.5%
Scandinavian 6 6 6 6 6 6 2015: $5,293 2015: 8.44%
2014: $5,280 2014: 8.25%
2013: $4,676 2013: 7.6%
2017: $10,309 2017: 19.09%
2016: $11,542 2016: 20.17%
Germany 10 10 10 10 9 8 2015: $14,370 2015: 22.91%
2014: $15,805 2014: 26.69%
2013: $16,617 2013: 27%
2017: $4,767.8 2017: 8.83%
2016: $4,834 2016: 8.45%
Holland 3 3 3 3 3 4 2015: $4,480 2015: 7.14%
2014: $3,588 2014: 5.6%
2013: $3,493 2013: 5.68%
2017: $9,091 2017: 16.84%
2016: $8,721 2016: 15.24%
Greece 9 5 5 5 5 5 2015: $9,173 2015: 14.63%
2014: $10,819 2014: 16.9%
2013: $10,487 2013: 17.05%
2017: $6,750 2017: 12.5%
2016: $7,070 2016: 12.36%
Other European 3 3 3 5 5 5 2015: $7,270 2015: 11.59%
2014: $6,269 2014: 9.79%
2013: $6,080 2013: 9.89%
2017: 42,495 2017: 78.7%
2016: 46,362 2016: 81.04%
European Total 41 36 36 36 33 33 2015: 50,942 2015: 81.23%
2014: $54,669 2014: 85.44%
2013: $55,447 2013: 90.12%
2017: $4,400 2017: 8.15%
2016: $3,950 2016: 6.9%
North America 3 3 4 4 4 4 2015: $3,650 2015: 5.82%
2014: $2,800 2014: 4.37%
2013: $1,950 2013: 3.17%
2017: $6,400 2017: 11.85%
2016: $6,150 2016: 10.75%
Far East 6 6 6 8 11 11 2015: $7,150 2015: 11.4%
2014: $5,500 2014: 8.59%
2013: $3,700 2013: 6.02%
2017: $400 2017: 0.74%
2016: $500 2016: 0.87%
Middle East 2 2 2 2
2015: $670 2015: 1.07%
2014:$670 2014: 1.05%
2017: 300 2017: 0.56%
2016: 250 2016: 0.44%
Australia 1 1 1 1 1 1 2015: 300 2015: 0.48%
2014:$350 2014: 0.55%
2013: $400 2013: 0.65%
2017: $53,994.96
2016: $57,211.35
World Total 51 46 49 51 51 51 2015: $62,711.51
2014: $64,019.47
2013: $61,497.46
Petrofin Bank Research © May 2018
Greek banks are gradually increasing their share of the Greek portfolio. German banks are steadily
decreasing and they are down by 1 as Bremer’s portfolio has been absorbed by Nord LB. it should be noted
that the number of banks engaged with Greek shipping is expected to increase for next year, as a number

May 2018
of new entrants have emerged, including Bank of Cyprus, Hellenic Bank, Maritime and Merchant Bank and
numerous others. Whilst their total contribution may not be large, it is expected that it shall grow and will
provide more choice to Greek owners.
The evolution of the number of banks financing Greek shipping in the last 25 years is as follows:
Graph 5
May 2018 Petrofin Bank Research ©
Number of banks financing Greek Shipping
1992-2017
45
41
40
36 36
35
35 33
32
31 31
30 30
30 29
27 27
25 23
21
20
20 19
18
16 16 16 16
15 15 15
15 14 14 13
13 12 12 12
12 12 12 12
11 11 11 11 11 11 11 11 11 11
10 11 10 10
10 9 10 9 9
6
5 5 5 5 5
5
0
1992 (52 banks)
1995 (67 banks)
1997 (77 banks)
2001 (40 banks)
2002 (51 banks)
2003 (54 banks)
2004 (50 banks)
2005 (40 banks)
2006 (39 banks)
2007 (41 banks)
2008 (40 banks)
2009 (41 banks)
2010 (39 banks)
2011 (55 banks)
2012 (51 banks)
2013 (46 banks)
2014 (49 banks)
2015 (51 banks)
2016 (51 banks)
2017 (51 banks)
Greek banks International Banks WITH a Greek presence International Banks WITHOUT a Greek presence
Same number of banks as last year. There is one addition, Amsterdam Trade Bank and one deletion,
Bremer Landesbank, whose portfolio is absorbed by Nord LB. We anticipate additions from next year.

May 2018
B. Analysis of the 3 bank groups
International Banks WITH a Greek Presence
Graph 6

International Banks WITH a Greek presence - in US$m
Total Greek portfolio – end 2017: $21,467.04
Total Greek Portfolio – end 2016: $23,990
Total Greek Portfolio – end 2015: $27,104, Number of Banks: 11 Totals
DVB $4,289 $19
$4,308
BNP Paribas $2,400 $400 $2,800
Citibank $2,200 $500

$2,700
*
HSBC $2,500 $2,500
ABN AMRO $2,220 $130

$2,350
HSH Nordbank * $1,850 $100 $1,950
DNB $1,560 $49 $1,609
Royal Bank of Scotland** $1,500 $1,500
Unicredit $1,000 $100 $1,100
$650 $650
Calyon*
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500
Drawn Committed but Undrawn

* Market estimate **Leaving shipping
In this bank group, all banks but BNP Paribas and Citi, are showing declining portfolios.

May 2018
Following Tables 7, 8 and 9 we note the differences between Total portfolios, Drawn loans and Committed but Undrawn
loans over a period of 8 years for the Banks WITH a Greek presence:
Table 7: International Banks with a Greek presence – Total Greek portfolios
International Banks WITH a Greek presence - Total Greek portfolios (in US$m)
Change
between
Bank end 2017 end 2016 end 2015 end 2014 end 2013 end 2012 end 2011 end 2010 end 2009 end 2008
2016 and
2017
Royal Bank of
$1,500 $3000 $5,200.0 $7,600.00 $8,813 $10,555 $11,455 $12,439 $13,302 $13,980 -50%
Scotland~*
HSH
$1,950 $1,950 $2,340.7 $2,567.58 $2,355 $2,297 $2,220 $3,122 $5,202 $5,670 0%
Nordbank*
Calyon* $650 $750 $800.00 $800.00 $1,100 $1,400 $1,550 $2,000 $2,000 $2,750 -13.33%
Unicredit $1,100 $1,360 $1,800.0 $1,573.00 $1,755 $1,860 $2,040 $1,885 $1,951 $2,176 -19.12%
DVB $4,308 $4,310 $4,542 $4,547.00 $3,700 $2,949 $2,831 $2,174 $1,470 $1,850 -0.05%
ABN AMRO $2,350 $2,525 $2,160.3 $1,988.00 $1,693 $1,450 $1,132 $346 $251 $236 -6.92%
HSBC* $2,500 $3,000 $2,000 $2,000.00 $1,750 $2,000 $2,400 $2,300 $1,650 $1,343 -16.67%
BNP Paribas $2,800 $2,481 $2,220 $1,955.00 $1,600 $1,948 $2,101 $2,244 $1,249 $1,239 12.86%
Citibank $2,700 $2,500 $2,200 $1,600.00 $1,400 $1,500 $1,108 $940 $940 $1,145 8%
DNB $1,609 $2,114 $2,341 $2,310.00 $2,576 $2,754 $2,850 $2,877 $2,544 $3,042 -23.89%
Total $21,467 $23,990 $27,104 $29,441 $30,742.5 $33,914.38 $35,293.00 $35,882.09 $36,777.31 $38,984.40 -10.52%
*Market Estimate ~ Exiting ship finance
Since 2010, this group, which was always very focused on Greek shipping, has been reducing its exposure to it. As most
of them are European, they underwent, and some are still going through, a major overhauling of their lending
strategies. It is expected that in 2018, when most of them will have separated their non performing loans from their
core portfolios, they will resume their lending, as the market is improving and margins and fees are quite attractive.
The exception in European banks is BNP Paribas, which has not stopped increasing its portfolio since 2009.

May 2018
Table 8: International banks WITH a Greek presence – Drawn loans
International Banks WITH a Greek presence - Drawn Loans (in US$m)

Change between
2016 and 2017
Royal Bank
of $1,500 $3,000 $5,200 $7,600 $8,600 $10,170 $10,620 $11,288 $11,279 $10,730 -50.00%
Scotland~*
HSH
Nordbank*
$1,850 $1,850 $2,156 $2,171 $1,993 $2,087 $2,180.00 $2,881.00 $4,583.00 $4,402.00 0.00%
Calyon* $650 $750 $800 $800 $1,000 $1,200 $1,250.00 $1,500.00 $1,500.00 $1,750.00 -13.33%
Unicredit $1,000 $1,190 $1,500 $1,480 $1,680 $1,836 $1,820.00 $1,701.40 $1,562.00 $1,640.00 -15.97%
DVB $4,289 $4,230 $4,400 $4,200 $3,200 $2,700 $2,500.00 $2,080.00 $1,309.00 $1,250.00 1.39%
ABN
AMRO
$2,220 $1,933 $2,047 $1,725 $1,462 $1,100 $815.00 $304.07 $135.00 $204.00 14.85%
HSBC* $2,500 $2,600 $2,000 $2,000 $1,750 $2,000 $2,200.00 $1,900.00 $1,450.00 $1,233.00 -3.85%
BNP
Paribas
$2,400 $2,072 $1,927 $1,644 $1,600 $1,920 $2,015.00 $1,980.00 $750.00 $523.00 15.83%
Citibank $2,200 $1,800 $1,600 $1,100 $1,100 $1,000 $911.00 $780.00 $875.00 $1,100.00 22.22%
DNB $1,560 $2,000 $2,200 $1,850 $2,082 $1,947 $2,136.00 $2,297.00 $2,257.00 $2,530.00 -22.00%
Total $20,169 $21,425 $25,329 $27,070 $28,467 $31,160 $31,620 $31,718 $30,861 $29,020 -5.86%

May 2018
Table 9: International Banks WITH a Greek presence – Committed but Undrawn loans
International bank WITH a Greek presence - Committed but Undrawn loans (in US$m)
Change
between
end end end end end end end end end end 2016
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 and
2017
Royal Bank of
Scotland~*
$0.00 0 0 0 $213 $385 $835.00 $1,151 $2,023 $3,250.0 -
*
HSH Nordbank $100.00 $100 185.079 396.83 $362 $210 $40.00 $241.00 $619.00 $1,268 0.00%
Calyon* $0.00 0 0 0 $100 $200 $300.00 $500.00 $500.00 $1,000.0 -
Unicredit $100.00 $170 300 93.3 $75 $24 $220.00 $183.40 $389.00 $536.00 -41.18%
DVB $19.00 $80 142 347 $500 $249 $331.00 $94.00 $161.00 $600.00 -76.25%
ABN AMRO $130.04 $592 113.5 263 $231 $350 $317.00 $41.54 $116.00 $32.00 -78.02%
HSBC* $0.00 $400 0 0 $0 $0 $200.00 $400.00 $200.00 $110.00 -
BNP Paribas $400.00 $409 293 311 $0 $28 $86.00 $264.00 $499.00 $716.00 -2.20%
Citibank $500.00 $700 600 500 $300 $500 $197.00 $160.00 $65.00 $45.00 -28.57%
DNB $49.00 $114 141 460 $494 $807 $714.00 $580.00 $287.00 $512.00 -57.02%
Total $1,298.04 $2,565 1774.6 2371.1 $2,276 $2,754 $3,670 $4,164 $5,916 $9,964 -49.39%
Commitments by banks with a Greek presence show the biggest decline since 2008.

May 2018
International Banks WITHOUT a Greek Presence
Graph 7
International Banks WITHOUT a Greek presence – in US$

As of end 2017: $23,436.89, Number of Banks: 36
As of end 2016: $24,501, Number of Banks: 36
As of end 2015: $26,434.59 Number of Banks: 35
Credit Suisse* $5,800 $400 $6,200
ING $1,630 $439 $2,069
CHINA EXIM* $1,600 $1,600

Nordea $1,304 $89 $1,393
KEXIM* $1,300 $1,300
DB - Deutsche Shipping* $1,000 $1,000
KFW $663 $278 $914
Nord LB $710 $710
China Everbright Bank* $600 $600
China Development Bank* $400 $400
CIT Maritime Finance* $350 $350
Qatar National Bank* $200 $200
Barwa Bank* $200 $200
NIBC $200 $200
Amsterdam Trade Bank $117 $32 $149
OTHER BANKS $6,125 $6,125
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Drawn loans Committed but Undrawn loans
* Market estimates Petrofin Bank Research © - May 2018
This year we include for the first time the Amsterdam Trade Bank, which is active in Greek shipping. The number of
banks remains the same, as Bremer Landesbank has been absorbed by Nord LB.

May 2018
The banks that have been included in this year’s research, as a collective entry, are the following:
Japan Bank for International Co-operation*

Nippon Export and Investment Insurance*
Danish Ship Finance*
Danske*
Fokus*
KBC Bank*
SEB*
ITF*
Scotia Bank*
Banque Lblux*
Bank of America*
Commonwealth Bank of Australia*
Berenberg*
Deka*
IIG Bank Malta*
FIMbank Malta*
Sumitomo Mitsui Trust Banking*
Mitsubish UFG*
ICBC ° *
Bank of China ° *
Bank of Communications ° *
Total portfolio: $6,125
*Market estimates ° * Chinese banks excluding Ship Leasing
These banks are up, since Japan and Korea show an increased interest in Greek shipping.

May 2018
Table 10: International Banks WITHOUT a Greek presence – Total Greek portfolios
International banks WITHOUT a Greek presence – Total Greek portfolios (in US$m)
Change
end end end end end end end end end between
Bank end 2017
2016 2015 2014 2013 2012 2011 2010 2009 2008 2016 and
2017
$4,90
Credit Suisse* $6,200.00 $6,470 $6,720 $5,919 $5,700 $5,211 $5,000 $4,500 $4,000 -4.17%
0
DB - Deutsche $1,59
$1,000.00 $1,500 $1,800 $2,000 $2,000 $2,000 $2,323 $2,613 $1,449 -33.33%
Shipping* 4
$1,04
Nordea* $1,393.00 $1,600 $1,702 $1,620 $1,060 $1,160 $1,050 $1,350 $900 -12.94%
0
Nord LB $710.00 $500 $605 $655 $855.04 $804.85 $593 $687 $674 $674 42.00%
CHINA EXIM °
$1,600.00 $1,600 $2300 $2000 $1,450 $1,200 $850 $650 $244 $94 0.00%
*
$1,007.
KFW $941.14 $1,042 $932.09 $899.17 $904.83 $400 $557 $600 $594 -9.68%
59
ING $2,069.00 $2,109 $2,120 $1,350 $1,500 $1,200 $1,200 $402 $197 $261 -1.90%
KEXIM* $1,300.00 $1,300 $1,150 $1,000 $700 $600 $500 $400 $400 $0.00 0.00%
China
Everbright $600.00 $600 $650 $500 $350 $300 $150 $0.00 $0.00 $0.00 0.00%
Bank ° *
NIBC $200.00 $200 $200 $250 $300 $150 0.00%
China
Development $400.00 $400 $1,850 $1,600 $1,000 $800 $500 0.00%
Bank ° *
CIT Maritime
$350.00 $400 $500 $400 -12.50%
Finance*
Qatar
National $200.00 $250 $335 $335 -20.00%
Bank*
Barwa Bank* $200.00 $250 $335 $335 -20.00%
Amsterdam
$148.75
Trade Bank
OTHER BANKS
$6,125.00 $5,700 $4,475 $3600 $2,885 $2,655 $2,710 7.46%
(21)
Total $23,436.89 $24,501 $26,435 $23,359 $19,718 $18,011 $16,237 $14,469 $14,102 $17,300 -4.34%
* Market estimates  Includes banks not active anymore ° Chinese Bank Finance excluding Ship Leasing
Overall these banks are down by 4.34%. The OTHER BANKS, comprised primarily of Far Eastern Banks, are up by 7.46%

May 2018
Table 11: International banks WITHOUT a Greek presence – Drawn loans
International banks WITHOUT a Greek presence – DRAWN LOANS (in US$m)

Change
between
end 2017 end 2016 end 2015 end 2014 end 2013 end 2012 end 2011 end 2010 end 2009 end 2008
2016 and
2017
Credit Suisse* $5,800.00 $5,935 $5,580 $5300 $4,800.00 $4,308.00 $4,000 $3,500 $3,000 $3,000 -2.27%
DB - Deutsche
Shipping*
$1,000.00 $1,500 $1,800 $2000 $2,000.00 $2,000.00 $2,100 $2,439 $1,122 $902 -33.33%
Nordea $1,304.00 $1,300 $1,335 $1160 $800.00 $750.00 $800 $1,050 $800 $840 0.31%
Nord LB $710.00 $500 $552.20 $615 $758.50 $715.16 $573 $525 $580 $580 42.00%
CHINA EXIM ° * $1,600.00 $1,600 $1,600 $1400 $1,000.00 $850.00 $600 $500 $150 0.00%
KFW $662.80 $799 $643.66 $616.5 $751.61 $660.82 $350 $332.50 $350 $370 -17.05%
ING $1,630.00 $1,890 $1,400 $1350 $1,500.00 $1,200.00 $1,000 $402 $180 $127 -13.76%
KEXIM* $1,300.00 $1,300 $700 $600 $400.00 $350.00 $300 $200 $150 0%
China Everbright
$600.00 $600 $450 $350 $250.00 $200.00 $100 0%
Bank ° *
NIBC $200.00 $200 $200 $162.5 $250.00 $150.00 0%
China
Development $400.00 $400 $1250 $1100 $700.00 $550.00 $350 0%
Bank ° *
CIT Maritime
$350.00 $400 $500 $400 -12.50%
Bank*
Qatar National
$200.00 $250 $335 $335 -20.00%
Bank*
Barwa* $200.00 $250 $335 $335 -20.00%
Amsterdam Trade
$116.75
Bank
OTHER BANKS
(21)
$6,125.00 $5,700 $4475 $3600 $2,885.00 $2,655.00 $2,710.00 7.46%
      
Total $22,198.55 $23,204 $21,840.86 $20,151 $17,073 $15,386 $15,334 $11,650 $10,516 $11,778 -4.33%

* Market estimates Includes banks not active anymore ° Chinese Bank Finance excluding Ship Leasing
Draws loans in International Banks without Greek representation are down by 4.33%. All banks are down with exception
of the minor increase of Nordea and Nord LB’s 43% increase, which is primarily due to the absorption of Bremer
Landesbank’s portfolio.

May 2018
Table 12: International Banks WITHOUT a Greek presence – Committed but Undrawn loans
International banks WITHOUT a Greek presence - Committed but Undrawn Loans (in USm)
Change between
2016 and 2017
Credit Suisse* $400.00 $535 $1,140 $619 $900 $903 $1,000 $1,000 $1,000 $1,900 -25.23%
DB - Deutsche
Shipping*
$0.00 0 0 0 0 0 $223.00 $174.00 $327.00 $692.00 -
Nordea $89.00 $300 $367 $460 $260 $410 $250.00 $300.00 $100.00 $200.00 -70%
Nord LB $0.00 0 $53 $40 $97 0 $20.00 $162.00 $94.00 $94.00 0.00%
CHINA EXIM °
$0.00 0 $700 $600 $450 $350 $250.00 $150.00 $94.00 $94.00 0.00%
*
KFW $278.34 $243 $364 $316 $148 $244 $50.00 $225.00 $250.00 $224.00 14.54%
ING $439.00 $219 $720 0 0 0 $200.00 0 $17.00 $134.00 100.46%
KEXIM* $0.00 0 $450 $400 $300 $250 $200.00 $200.00 $250.00 0.00%
China
Everbright $0.00 0 $200 $150 $100 $100 $50.00 0.00%
Bank ° *
China
Development $0.00 0 $600 $500 $300 $250 $150.00 0.00%
Bank ° *
NIBC $0.00 0 0 $88 $50 0 0.00%
CIT Maritime
Finance*
$0.00 0 0 0 0.00%
Qatar National
$0.00 0 0 0 0.00%
Bank*
Barwa Bank* $0.00 0 0 0 0.00%
Amsterdam
$32.00
Trade Bank
      
Total $1,238.34 $1,297 $4,594 $3,208 $2,645 $2,625 $2,552 $2,820 $3,585 $5,521 -4.52%

* Market estimates Includes banks not active anymore ° Chinese Bank Finance excluding Ship Leasing
KfW and ING are the only two banks in this group that show a forward commitment to Greek shipping.

May 2018
Greek Banks
Greek Banks as a whole are the only Group that has shown a growth of 4.25%. The biggest growth is that of Eurobank in
percentage terms (24.21%)
Graph 8
Greek Banks – in US$m
end 2017: $9,091.03, Number of Banks: 5
end 2016: $8,720.65m, Number of Banks: 5
end 2015: 9,172.92m, Number of banks: 5
Totals
$2,750
Piraeus Bank ** $2,750
$2,302 $125.20
National Bank of Greece $2,428
$2,100 $125.00
Alpha Bank $2,225
$1,470 $54.00
Eurobank $1,524
$163 $1.88
Aegean Baltic $ 164.43
0 500 1,000 1,500 2,000 2,500 3,000
Drawn Loans Committed but Undrawn Loans
May 2018 Petrofin Bank Research ©

**
^ Excluding ferries

May 2018
Table 13: Total Greek bank portfolios
Greek Banks - Total portfolios (in US$m)

Change
end end end end end end end end end end between
Bank 2016
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 and
2017
Piraeus
Bank
^ $2,750 $2,730 $3,000 $3,850 $3,900 $1,860 $1,950 $2,000 $1,810 $2,078 0.73%
National
Bank of $2,428 $2,368 $2,640 $2,933 $2,733 $2,389 $2,566 $3,004 $3,217 $3,546 2.51%
Greece
Alpha Bank $2,225 $2,190 $2,100 $2,420 $2,435 $1,715 $2,050 $2,470 $2,675 $2,650 1.60%
Eurobank $1,524 $1,227 $1,196 $1,315 $1,150 $1,054 $1,266 $1,410 $1,373 $1,299 24.21%
Aegean
Baltic
$164 $205 $237 $301 $269 $308 $362 $327 $339 $324 -19.97%
Total $9,091.03 $8,720.65 $9,172.91 $10,819.16 $10,486.91 12704.54 $14,517 $15,833  $16,140 $16,945 4.25%
^ 
Excluding ferries Includes portfolios of banks not active anymore
Greek banks as a group are up in their exposure to Greek shipping by 4.25%.
Table 14: Greek banks – Drawn loans
Greek Banks - Drawn Loans (in US$m)

Change
end end end end end end end end end end between
Bank
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2016 and
2017
^
Piraeus Bank $2,750 $2,730 $3,000 $3,850 $3,900 $1,850 $1,900 $1,870 $1,700 $1,960 0.73%
National Bank
of Greece
$2,302 $2,355 $2,515 $2,652 $2,592 $2,232 $2,432 $2,545 $2,374 $2,382 -2.23%
Alpha Bank $2,100 $2,100 $2,100 $2,420 $2,400 $1,700 $1,950 $2,120 $2,275 $2,100 0.00%
Eurobank $1,470 $1,100 $1,089 $1,160 $1,150 $1,054 $1,188 $1,211 $1,181 $1,001 33.64%
Aegean Baltic $162.55 $200 $237 $296 $268 $304 $326 $291 $308 $273 -18.58%
   
Total $8,784.95 $8,485 $8,941 $10,378 $10,309.8 $12,318 $13,624 $13,715 $13,229 $12,777 3.54%
^
Excluding ferries  Includes portfolios of banks not active anymore
Eurobank is up by a third and the other 3 of the 4 major banks show minor fluctuations.

May 2018
Table 15: Greek Banks – Committed but Undrawn loans
Greek Banks - Committed but Undrawn loans (in US$m)

Change
between
2016 and
2017
Piraeus
$0.0 $0 $0.0 $0.0 $0.0 $10 $50 $130 $110 $118 0.00%
Bank^
National
Bank of $125.2 $13.2 $125.0 $281.0 $141.0 $157 $134 $459 $843 $1,164 848.48%
Greece
Alpha Bank $125.0 $90 $0.0 $0.0 $35.0 $15 $100 $350 $400 $550 38.89%
Eurobank $54.0 $127 $107.0 $155.0 $0.0 $0 $78 $199 $192 $298 -57.48%
Aegean
$1.9 $5.8 $0.0 $5.5 $1.2 $4 $36 $36 $31 $51 -67.67%
Baltic
Total $306.08 $236 $232.00 $441.50 $177.15 $386.30 $892.46 $2,168 $2,911 $4,168.00 29.69%
^ 
Excluding ferries Includes portfolios of banks not active anymore
For the National Bank of Greece and Alpha Bank, the percentages of positive change are numerically quite large, but the
overall numbers are not considered substantial for the shipping industry. They do point, however, to a positive level of
commitment by those two banks that is encouraging.

May 2018
Table 16: summarises in one table the comparative statistics for the Greek ship-finance market over the last 17 years.
Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec-
Greek Shipping loan volumes in $bn
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec-
Number of banks
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
Greek presence
banks WITH a
International
11 10 10 9 11 11 13 12 11 11 11 11 11 11 11 10 10 $7.05 $8.19 $10.12 $13.94 $19.45 $24.25 $37.04 $38.98 $36.78 $35.88 $35.29 $33.90 $30.74 $29.44 $27.10 $23.99 $21.47
Greek presence
International
WITHOUT a
banks
20 30 29 27 15 16 16 16 18 16 32 31 30 33 35 36 36 $6.17 $8.60 $9.79 $12.07 $10.05 $14.79 $14.06 $17.30 $14.10 $14.47 $17.89 $19.16 $20.27 $23.76 $26.44 $24.50 $23.44
Greek banks
9 11 15 14 14 12 12 12 12 12 12 9 5 5 5 5 5 $3.31 $4.47 $5.64 $6.34 $6.52 $7.35 $15.84 $16.94 $16.14 $15.88 $14.52 $12.70 $10.49 $10.82 $9.17 $8.72 $9.09
Totals 40 51 54 50 40 39 41 40 41 39 55 51 46 49 51 51 51 $16.53 $21.26 $25.55 $32.35 $36.11 $46.39 $66.94 $73.23 $67.02 $66.24 $67.69 $65.76 $61.50 $64.02 $62.71 $57.21 $54.00

May 2018
C. Newbuilding finance research -
Forward commitments to newbuildings went up slightly in 2017 showing an increase of 2.07%, reversing
last year’s first ever slowdown by 1%. The overall newbuilding allocated portfolio of $1.86bn is down by
30%, compared to 2016’s $2.66bn. Greeks are still debating whether to go out in full force to order
newbuildings as the previous over-ordering is still very fresh. Newbuildings by Greeks so far amount to 233
orders, which shows caution. However, latest intelligence suggests that the numbers will show significant
growth as the year progresses.
Table 17
end 2012 end 2013 end 2014 end 2015 end 2016 end 2017
Change in %
allocation to
Committed Committed Committed Committed Committed Committed Newbuildings
Bank
but but but but but but between
% for Amount % for Amount % for Amount % of Amount % of Amount Amount
Undrawn Undrawn Undrawn Undrawn Undrawn Undrawn % of N/Bs 2016 and
N/Bs for N/Bs N/Bs for N/Bs N/Bs for N/Bs N/Bs for N/Bs N/Bs for N/Bs for N/Bs
portfolio portfolio portfolio portfolio (in portfolio portfolio 2017
(in $m) (in $m) (in $m) $m) (in $m) (in $m)
Credit
Suisse* $903.00 94% $847.83 __ _ _ $619.00 56% $346.64 $1,140.00 55% $630.42 $535.00 44% $236.00 $400.00 80% $320.00 36%
National
Bank of $157.00 59% $92.41 $141.00 38% $53.44 $281.00 46% $128.42 $125.00 75% $93.25 $13.20 100% $13.20 $125.20 31.50% $39.44 -69%
Greece
HSH
Nordbank
* $210.34 1% $2.10 $397.00 11% $43.67 $396.80 0% $0.00 $185.08 0% $0.00 $100.00 80% $80.00 _ _ _ _
BNP
Paribas $28.31 100% $28.31 * * * $311.00 100% $311.00 $293.00 100% $293.00 $409.00 100% $409.00 $400.00 87.00% $348.00 -13%
UNICREDIT $24.20 100% $24.20 $75.35 58% $43.33 $93.30 100% $93.30 $300.00 100% $300.00 $170.00 100% $170.00 $100.00 100.00% $100.00 0%
DNB $807.00 79% $638.98 $494.00 86% $423.36 $460.00 80% $368.00 $141.00 33% $47.09 $114.00 93% $106.02 $0.00 -93%
Eurobank $0.00 $155.00 0% $0.00 $0.00 0% $0.00 $127.00 30% $38.10 $54.00 26.00% $14.04 -4%
DVB $249.00 96% $239.04 $500.00 99% $493.50 $347.00 100% $347.00 $142.00 100% $142.00 $80.00 81% $64.80 $19.00 48.00% $9.12 -33%
ABN AMRO $231.00 100% $231.00 $263.00 84% $220.71 $113.50 76% $86.50 $591.68 89% $523.64 $130.04 67.00% $87.13 -22%
CITI $500.00 100% $500.00 $300.00 100% $300.00 $500.00 100% $500.00 $600.00 90% $540.00 $700.00 90% $630.00 $500.00 90.00% $450.00 0%
ING $720.00 90% $648.00 $219.00 89% $196.00 $439.00 63.32% $277.97 -26%
Alpha $90.00 100% $90.00 $125.00 80.00% $100.00 -20%
HSBC $400.00 25% $100.00 $0.00 -25%
NORDEA $89.00 100.00% $89.00 100%
Amsterdam
Trade Bank
$32.00 68.75% $22.00 _
Totals $3411^ 81% $2774^ $2535^ 72% $1830^ $4055^ 68% $2758^ 4179^ 76% 3180^ $3549^ 74.87% $2657^ $2,413 76.94% $1,857 2.07%
May 2018 ^ Figure includes banks not featured this year * Market estimates Petrofin Bank Research ©

May 2018
D. The Greek shipping Syndications Market
Citi continues to be the leader of the syndication leaders with a small decrease in the portfolio it is leading.
Nordea’s increase of leadership is impressive at 58%. KFW has shown a marked decline by 76.5% and ING
has more than doubled its leadership. Porftolios are down by 29.32%. The Aegean Baltic is steady in its pacs
of leadership and BNP Paribas is showing a reversal of the last three years’ decline.
Table 18
Change
No of
Bank 2010 2011 2012 2013 2014 2015 2016 2017 in the
banks
last year
1 CITI $2,390 $300 $2,000 $2,000 $2,500 $3,500 $5,500 $5,000 -9.09%
2 NORDEA $2,100 $1,100 $2,500 $1,510 $510 $1,491 $1,500 $2,370 58.00%
AEGEAN
3 $1,497 $1,399 $1,346 $1,291 $1,270 $1,066 $890 $867 -2.54%
BALTIC
4 UNICREDIT $281 $246 $227 $210 $341 $150 $100 $100 0.00%
NATIONAL
5 BANK OF $490 $447 $427 $451 $360 $336 $317 $259 -18.23%
GRECE
ABN
6 $123 $278 n/a $121 $1,299 $1,463 $1,390 $730 -47.47%
AMRO
BNP
7 $255 $473 $665 $580 $545 $442 $321 $357 11.06%
PARIBAS
8 KFW $45 n/a $402 $312 $311 $338 $273 $64 -76.48%
9 ING $118 $397 236.44%
^ ^ ^ ^ ^ ^ ^
Totals $12,856.33 $10,275.83 $11,512.48 9897.21 9713.29 11935.06 13790.65 $9,747.04 -29.32%
May 2018 ^ Figure includes banks not featured this Petrofin Bank Research ©
The bank syndication and Club deal market has been hit over the years by both market uncertainty as well
as the very high quality criteria for such lending. Increasingly, owners have more choices in the issuance of
bonds or in tapping the Norwegian market, and this development has affected the syndications market.
The reduction of new building orders and deliveries has also had an impact.

May 2018
5. The outlook for 2018 and beyond
2017 was a year in which market sentiment, especially in the dry market, showed some
improvement. In addition, global economic growth and international trade continued to
grow at a robust pace approaching 4% p.a. overall. With the slowdown in new vessel
deliveries across a number of sectors, the improved sentiment allowed for some cautious
optimism among banks. For a small number of banks, it presented the opportunity to
continue their growth and increase market share, whilst for others the opportunity to
reduce or sell large parts of their loan portfolios. At the same time, yoy loan provisions
started to fall. The above changes have impacted to an extent on the 2017 Bank Research ©
but they are expected to impact more fully in the forthcoming end 2018 research.
It is becoming apparent that the impact on the total number of those banks, which are
either downsizing or leaving shipping, is beginning to run its course and will be a reduced
factor henceforth. Problem loan portfolios and loan provisions have also started to reduce.
It is very encouraging to note that as bank loan margins are attractive and bank loan demand
is high, a number of banks have either commenced lending into Greek shipping or have
started to increase their commitments.
The new banks are either based in Europe e.g. Bank of Cyprus, Hellenic, Amsterdam Trade
Bank, M&M, Corner Bank and others or are local banks, primarily in Singapore, Malaysia,
Hong Kong and Dubai. It should be noted that Orix, which have until recently been a leasing
financier has commenced, selectively, to lend to top Greek names, on a traditional bank loan
basis.
Whilst it remains difficult to forecast future Greek ship finance numbers, it is safe to say that
a slowdown in the rate of decline in Greek ship finance lending is expected to commence in
the next couple of years. In the event that more shipping segments show improved market
prospects, it is well possible that Greek shipping shall start to grow, once again, supported to
a large extent by the further growth of Far East lenders.
Bank lending terms continue to be strict and lending criteria high. Still, traditional bank
lending represents the least expensive source of finance (except for export finance, in most
cases).
With demand for loans far outstripping supply, as evidenced by the continuous growth in
the Greek owned fleet, it is not surprising that other forms of finance have become
increasingly popular among owners.
Leasing has become the main choice of many small to medium owners, even though Chinese
leasing companies prefer larger transactions. The lending ratios of such leasing companies
are more aggressive than the 50% - 60% offered by banks and often exceed 70%. The
increased risk is reflected in higher costs, which normally exceed bank finance costs by 1% -
2% and do commit owners to long-term transactions. However, as timing of purchases is of
paramount importance to Greek owners, the extra cost is absorbed into the vessel’s
acquisition cost.
Lastly, we have witnessed increased interest by Japanese leasing companies, especially for
Japanese newbuildings. Such terms are not dissimilar to banking terms. Private equity funds
have not only increased their presence in providing investment funds to Greek owners by

May 2018
sharing in projects but also in offering finance. Their terms are normally high e.g. 9% - 12%
per annum, including fees and the cost of funding. In compensation, such funds tend to be
swifter in providing their approval, more flexible, allow for longer lending profiles and
provide higher finance margin ranging from 50% - 70% of vessel values, depending on the
client. The number of such funds (both investment and finance) has multiplied and their
interest is currently more focused on second hand vessels.
The Norwegian KS market and the Norwegian investment and finance market has continued
to support owners and Greek names have often figured in Norwegian deals. This market has
increasingly become more opportunistic and less yield oriented, emphasizing those relative
sectors, which offer enhanced recovery potential. Greek banks are clearly committed to
Greek shipping as one of the very few sectors in which they can provide their full range of
services and build up quality client relationships. Despite the Greek economic difficulties and
the high levels of nonperforming loans (the vast majority outside Greek shipping), these
banks have nurtured their Greek clients and have increased their lending. As Greek banks
and the Greek economy’s prospects shall hopefully improve, so will Greek bank lending, in
years to come.
In conclusion, shipping market prospects appear to be stabilizing and, in some sectors,

improving. This will further propel Greek interest in acquiring more newbuildings and second
hand vessels and the enhanced appetite will result in more bank finance and non-bank
finance being used.
The deleterious prospects of a tariff war and the economic effects of increased sanctions on
Iran, Russia and possibly other countries, do appear to dampen hopes of a strong increase of
international trade, which is expected to remain, according to analysts and the IMF, at
approximately 3.5% per annum.
As usual, it will be the supply position and newbuilding orders that will impact on the
shipping markets. Thus far, the overall shipping fleet is growing at levels commensurate with
the rise of demand but this may easily change.
We need to also highlight the rise in US interest rates to higher levels e.g. 5-year swap at
over 3% p.a. This is a worrisome trend that will adversely impact on vessel breakeven costs.
Lastly, the risk / reward of bank ship finance appear to be improving. A more stable
international financial climate for banks, coupled by enhanced prospects in shipping, is
expected to result in more banks becoming willing to lend into the Greek market. This is a
welcome development and prospect.

May 2018

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Key Developments and Growth in Greek Ship-Finance

By Ted Petropoulos, Head, Petrofin Research.

2. Petrofin Index of Greek ship finance p. 3

3. Total Greek shipfinance portfolio as of end 2017 p. 5

4. Research and Analysis

5. The outlook for 2018 and beyond p. 29

1 Petrofin Bank Research© - www.petrofin.gr

2 Petrofin Bank Research© - www.petrofin.gr

400 405 405 409

Petrofin Bank Research© - as of end 2017, May 2018

3 Petrofin Bank Research© - www.petrofin.gr

405 405 409

Petrofin Bank Research© - as of end 2017, May 2018

4 Petrofin Bank Research© - www.petrofin.gr

Petrofin Bank Research © - May 2018

5 Petrofin Bank Research© - www.petrofin.gr

Credit Suisse* $5,800 $400 $6,200

OTHER BANKS (21) $6,125 $0 $6.125

$0.00 $1,000.00 $2,000.00 $3,000.00 $4,000.00 $5,000.00 $6,000.00 $7,000.00

Drawn Loans Committed but Undrawn Loans

Petrofin Bank Research© - as of end 2017, May 2018

6 Petrofin Bank Research© - www.petrofin.gr

A. The Greek shipfinance market as of end 2017

Graph 4: Bank exposure in terms of bank groups is as follows:

7 Petrofin Bank Research© - www.petrofin.gr

$53,994.96 $9,091.03 $23,436.89 $21,467.04 as of end 2017

$57,211.65 $8,720.65 $24,501.00 $23,990.00 as of end 2016

$62,711.50 $9,172.91 $26,434.59 $27,104.00 as of end 2015

$64,019.47 $10,819.2 $23,759.43 $29,440.88 as of end 2014

$61,497.51 $10,486.9 $20,268.03 $30,742.57 as of end 2013

$65,780.26 $12,704.5 $19,161.35 $33,914.38 as of end 2012

$67,694.36 $14,517.1 $17,886.81 $35,290.47 as of end 2011

$66,234.65 $15,883.6 $14,468.76 $35,882.29 as of end 2010

Overall decline with the exception of Greek banks.

between December 2014

Petrofin Bank Research© - www.petrofin.gr

Petrofin Bank Research © - May 2018

and December 2010

and 2016: 163%)

Drawn portfolios Commited but undrawn portfolios

2017:-5.9% 2017: -49%

2016: -15.41% 2016: 44.5%

2015: -6.43% 2015:-25.1%

2013: -8.7% 2013:-17.4%

2012: -1.45% 2012:-25%

2011: -0.31% 2011: -11.8%

2017: -4.33% 2017:-4.52%

2016: -5.1% 2016: 1.72%

2015: -13.9% 2015:-47.4%

2012: -9.59% 2012:-56.7%

2011: -0.66% 2011:-58.8%

2015:-3.3% 2015: 9.62%

Total 2014:2.83% 2014:-18.1%

2012:-0.9% 2012: -19%

2011: +6.13 2011:-22.3%

Petrofin Bank Research © - May 2018

9 Petrofin Bank Research© - www.petrofin.gr

Greek shipping portfolios as of end 2017

OTHER BANKS (21) $6,125.00 $0.00 $6,125.00