Financing after Basel IIIFD Seminar 27 November 2014

Impact of Basel III

2

Basel II and Basel III comparison

3

Financial crisis – key dates

9 August 2007: BNP Paribas suspends repayment of 2 subprime funds

16 March 2008: JPMorgan buys BearStearns for USD 2

14 September 2008: BoA buys Merrill Lynch for USD 1

15 September 2008: the downfall of Lehman Brothers stock market loses 30%

25 September 2008: NL opportunistically takes over the Dutch part of Fortis-ABN (‘Revenge of the Dutch’)

5 October 2008: BNPP buys Fortis and Belgian takes 20% of BNPP (share price at EUR 35)

10 May 2010: The ECB buys Greek debt on the 2nd market for the first time (European Financial Stability Facility)

14 November 2008: Europe enters into recession

9 March 2009: lowest stock market in 10 years (S&P was 676pts and now ~1400pts)

5 November 2009: Greek crisis. New government announces the lies of the previous government

April 2010: rates rise to 12% and GR receives EUR 110 billion from EU

21 November 2010: Ireland asks for help (85 billion)

6 April 2011: Portugal asks for help (78 billion)

25 June 2012: Spain asks for help (more than 100 billion)

4

Size of the shipping loan market

5

Average margins vs CDS spread

6

Margin Euronav loans

0.00 %

0.40 %

0.80 %

1.20 %

1.60 %

2.00 %

2.40 %

2.80 %

3.20 %

3.60 %

4.00 %

2005/q1 2005/q1 2008/q3 2008/q3 2010/q1 2012/q1 2013/q1 2013/q2 2014/q1

Margin % evolution on loan facilities

Margin

7

Leverage (loan to value)

40.00 %

50.00 %

60.00 %

70.00 %

80.00 %

90.00 %

100.00 %

2005/q1 2005/q1 2008/q2 2008/q3 2008/q3 2008/q3 2009/q2 2012/q2 2012/q1 2013/q1 2013/q2 2014/q1 2014/q4

LTV - Loan to Value

LTV

Maersk Acquisition 5 January 2014

9

Major Acquisition 5 January 2014

Acquisition of 15 VLCCs (Very Large Crude Carriers)

Total acquisition price: USD 980 million

USD 500 million bank debt

• Secured

• Leverage: 50%

• 6-year maturity

• Margin 2.75%

USD 235 million bond

• Fixed rate 5.95%

• 7-year maturity

USD 350 million equity

• Private placement

FINANCING

Acquisition 4 additional VLCC vessels from Maersk

11

Acquisition four additional VLCC vessels from Maersk

4 additional Japanese built VLCCs

Total acquisition price: USD 342 million

USD 215 million bank debt

• Leverage: 60%

• 7-year maturity

• Margin 2.25%

USD 125 million equity

• Accelerated book building

FINANCING

Innovative ways to raise capital

13

Innovative ways to raise capital

Equity

PCP’s

Convertible bonds

Mezzanine-financing

Baby bonds (unrated)

High yield unsecured bonds (rated)

Bank financing