Lending operations

Our primary target group is shipowners in Denmark. Outside Denmark, Danish Ship Finance is focused on large, recognised operators. Danish Ship Finance has built a diversified customer and ship portfolio, which in terms of geography covers a large range of markets.

Danish Ship Finance offers ship financing against security in vessels and, in special cases, financing for shipbuilding activities. Further information on the vessel types financed by Danish Ship Finance can be found here.  

Financing provided by Danish Ship Finance is based on the value of the vessel (the mortgaged asset) and projections for a vessel's earnings potential. Financing will typically not exceed 70% of a vessel's market value. Financing is always provided against first priority mortgage in the vessel and assignment in respect of the vessel's insurances. The term of the loan, additional collateral and other loan terms are agreed on an individual basis.  

Danish Ship Finance places great emphasis on the borrower's financial strength and experience in shipping operations. We seek to maintain low credit exposure in our loan portfolio.  

Danish Ship Finance is always prepared to discuss particular issues, whether of a market, financing or technical nature.      

Valuation of ship mortgages

The company values each vessel twice annually. The valuation is generally fixed by an external broker, who fixes a price for the financed vessels on the basis of supply and demand. The company may also determine the value itself, for example on the basis of a specific independent market price or if external assessments have been received for similar vessels. Market valuations are used for example to determine the loan-to-value ratio on the company’s loans and for control purposes in connection with the half-yearly impairment charges on loans, advances and receivables.

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