Shipterm - BIMCO Bulletin


CONTRACTS AND CLAUSES | finanCing November 2017 SHiPteRM goes to New York and Dubai By Christian Hoppe, General Counsel at BIMCO Two well-attended seminars on SHIPTERM, BIMCOs new standard term sheet for bilateral ship financing transactions, show good interest in the new form from the shipping, banking and legal communities. B IMCOs standard term sheet for bilateral ship financing transactions, codenamed SHIPTERM, was the focus of two seminars held in New York on 28 September and Dubai on 16 October. Both seminars attracted many experts engaged in ship financing, keen to know more about the new form. Francis Sarre, chairman of the subcommittee that developed SHIPTERM as well as of BIMCOs Documentary Committee, said: SHIPTERM is innovative and breaks new ground. It is the first time BIMCO has developed a document in the area of ship financing. As with all other new products, we therefore have to go out and let the market know about it. The seminars in New York and Dubai provided an excellent opportunity for some of the members of the subcommittee engaged in the development of SHIPTERM to introduce the new term sheet to the local ship financing communities. At the seminars, participants were given an outline of SHIPTERM its format and indicative nature, the content of key individual provisions, and its intended use. Christian Hoppe ... it is clear in its terms, dedicated to the shipping sector, and has been developed in a concise and easy-touse format providing a sound base for negotiating ship financing Mr Sarre, who was on the panel at both seminars, continued: SHIPTERM contains what parties would normally expect to find in a term sheet relating to financing of ships. At the same time, it is clear in its terms, dedicated to the shipping sector, and has been developed in a concise and easy-to-use format providing a sound base for negotiating ship financing. It should therefore add value to everyone engaged in the financing or refinancing of ships. The panel at the New York seminar, hosted by Blank Rome LLP at the Chrysler Building, also included two other members of the subcommittee that developed SHIPTERM: Klaus Vilstrup of Dampskibsselskabet Norden and Matt Hannaford of Hannaford Turner LLP. Another subcommittee member, Christopher Conway of Citibank, joined Francis Sarre and Klaus Vilstrup in Dubai, where Citibank hosted the seminar at the Dubai International Financial Centre. BIMCOs General Counsel Christian Hoppe kicked-off both seminars by providing a general introduction to the term sheet project and why BIMCO had engaged in the project in the first place. Following the seminars, he said: We have seen quite a lot of interest in SHIPTERM since its adoption and we therefore feel confident that, with time, the standard will become widely used by stakeholders engaged in ship financing. At the moment, the term sheet would appear to be used as a reference document a checklist if you will which is an important step in the right direction. SHIPTERM was adopted by the Documentary Committee in November 2016. Both the term sheet and explanatory notes are available on the BIMCO website and on idea, BIMCOs one-stop digital shop for all standard maritime contracts and clauses. A Word version of the document can also be obtained by contacting BIMCO at Syndicated form underway Christian Hoppe is the General Counsel at BIMCO. He has a degree in law from the University of Copenhage and an LL.M. with distinction from the University of Southampton. Christian joined BIMCO in 2009 and represents the association at a number of international meetings, including the IMOs Legal Committee. He provides legal and policy input on a wide range of shippingrelated matters. Work is ongoing to also develop a syndicated version of the term sheet. The Documentary Committee (DC) gave the go ahead in November 2016 and two meetings have been held by the subcommittee responsible for the project. A first draft will be reviewed at the DC meeting on 14 November in Copenhagen. A revised draft could then be presented for possible adoption by the committee when it meets in New York in May 2018. When SHIPTERM was developed, a sounding board was established to enable a broader group of stakeholders to comment on the work as it progressed. This initiative has been continued for the syndicated term sheet and close to 100 experts from the ship owning, banking and legal sectors around the world have joined. A first draft is expected to be distributed to the sounding board before the end of the year. Join the sounding board Parties interested in joining the sounding board can sign up by sending an email to Participation takes place on a confidential basis and feedback on the drafts is shared only with members of the subcommittee responsible for the project. Connect with BIMCO Facebook Twitter Linkedin YouTube