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Alternative Sources of Raising Capital in Shipping Corporations: Bridging the Funding Gap

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Submitted By linopaido
Words 7194
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MSc in Shipping Trade & Finance

2011/2012

Alternative Sources of raising capital in shipping corporations:
Bridging the Funding Gap

By
Linos Alexandros Kogevinas
100021584
Supervisor: Dr. Giovanni Cespa

Acknowledgments
Having completed a rather long, but enjoyable year at Cass Business
School , I feel obligated to thank a few people who helped me along the way.
Firstly, I’d like to offer my most sincere thanks to my supervisor, Dr.
Giovanni Cespa for accepting to supervise me and putting me on the right track with this dissertation.
Following, I’d like to thank my family for their moral support throughout the year.
Last but not least I’d like to thank the entirety of the staff at Cass who helped further my education throughout the year.
To all of you,
Thank you

Abstract
The goal of this thesis is to evaluate and present the main alternative sources of finance for shipping corporations in the scope of the post-2008 market downturn. By “alternative” the author refers to any source finance that is not vanilla financing i.e. bank debt. Lists of benefits and drawbacks for each alternative source will be presented for all parties of the transaction in question.
This is done in order to present an evaluation that will facilitate the reader in understanding the value of each source as well as potential costs and risks. While there are numerous alternative sources that could be covered, the emphasis has fallen only on those that carry at least a sizeable portion of market transactions.
The study, similar to the industry itself, has a global character as the author felt that limiting the study to specific countries would give biased results.
This study will by no means present the best source of finance for this particular industry. As will be stressed greatly below, financing depends very much on the specific needs of each

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