North Cape, based in Europe, has been providing investment advice and financial solutions primarily for ships and aircraft. It has also been involved in the investment and loan structuring for over 60 ships in the Japanese maritime market. We spoke with Mr. Theodoros Konstantatos, the Managing Director from Greece, about North Cape’s current status and its initiatives in the Japanese maritime market. (Interviewer: Hirofumi Yamamoto)
–Please provide an overview of North Cape.
“NorthCape is a global financial advisory firm headquartered in Oslo and Singapore, with additional satellite offices in Athens and London. Established in 2012 as a partnership, NorthCape is now employee-owned and comprises a team of 16 professionals with significant expertise in investment and commercial banking.”
“Specializing in corporate finance and advisory services, NorthCape serves both publicly listed and private companies. Since our inception, we have successfully structured and closed transactions exceeding USD 20.5 billion, encompassing over 296 vessels (ships and aircraft).”
“Our primary goal at NorthCape is to cultivate a robust, sustainable, and competitive company that prioritizes the well-being of our employees, shareholders, and stakeholders. We uphold the values of confidentiality and extensive experience as paramount in our operations.”
“NorthCape provides unparalleled access to a vast network of financial institutions and alternative capital providers, particularly focusing on the maritime and aviation sectors. Our commitment lies in delivering comprehensive and strategic solutions tailored to the unique needs of our clients, fostering enduring partnerships and creating value for our clients.”
–What services does North Cape specialize in, especially in the financial market and specifically in the maritime market?
“NorthCape specializes in sale and leaseback transactions involving capital-intensive assets, primarily focusing on the shipping, offshore, cruise, and aviation sectors. Additionally, we provide expert advice on mergers and acquisitions (M&A) and various layers of the capital structure, including senior and mezzanine debt, ECA financings, and joint ventures (JVs).”
“With a proven track record, we have facilitated and successfully closed more than 116 separate transactions, ranging from single to multi-vessel deals. As seasoned arrangers of financing transactions, NorthCape offers unparalleled structuring capabilities, adept negotiation support, rigorous due diligence, and attentive documentation assistance.”
“Benefiting from a robust international network, NorthCape maintains excellent relationships with leasing companies, banks, and both private and institutional investors. Our comprehensive approach ensures optimal outcomes for our clients, delivering tailored solutions and fostering long-term success in a dynamic financial landscape.”
–Could you discuss North Cape’s track record in structuring Jolco and S&LB so far ?
“In the context of Japan, NorthCape has been instrumental in structuring 39 deals involving 64 ships since our inception. These transactions encompass various vessel types, including bulkers, tankers, reefers, and container ships. Given the nuances of Japanese business culture, particularly in the Jolco and sale and leaseback (S&LB) space, relationship-building plays a pivotal role. Once a company establishes a foothold in the market, which can be challenging, opportunities for growth and value enhancement abound.”
“At NorthCape, our strategic focus centers on value creation, underpinned by robust governance principles, streamlined operational procedures, and meticulous risk management. Our firm commitment to credit consciousness and our relationship-centric values, serve as a cornerstone of our success in Japan, enabling us to forge enduring partnerships and drive sustainable growth in a dynamic and competitive landscape.”
–What does North Cape seek in the Japanese market in the future?
“In Japan, regional owners are actively seeking alternative business avenues, particularly as major Tokyo-based operators downsize their fleets and aircraft leasing deals decrease. Concurrently, affluent regional banks are leveraging sale and leaseback transactions as a means to expand their lending activities abroad, injecting additional liquidity into the market. Japan remains a significant source of financing for ships, especially as Western banks exhibit reduced interest in refinancing endeavors.”
“While Western banks often exhibit reluctance toward financing older vessels, Japanese finance distinguishes itself by its willingness to support both newer and older ships, provided there is a corporate guarantee from the borrower’s holding company.“
“NorthCape is committed to fostering enduring relationships in Japan, with a focus on providing owners, lenders, and other financial institutions with op
portunities to finance vessels owned by reputable and dependable Western counterparts. Our aim is to facilitate mutually beneficial transactions that contribute to the continued growth and stability of the maritime financing landscape.“