Strategic Investment in a Bulk Carrier Vessel — Equity Entry into Maritime Ownership

Strategic Investment in a Bulk Carrier Vessel — Equity Entry into Maritime Ownership

This business venture presents a unique opportunity to invest in the acquisition and operation of a Handymax or Ultramax bulk carrier vessel (40,000 to 85,000 DWT), less than 10 years old, built in Japan or China, supported by a pre-secured 5-year time charter (TC) agreement with a top-tier A1-rated charterer.

Designed for investors seeking access to the maritime sector without incurring operational risk or full capital exposure.

This project offers 30% equity participation, granting full ownership of the vessel by the end of the 5-year term while generating charter income from the outset.

Investment Structure

A Special Purpose Vehicle (SPV) will be formed to act as the vessel-owning entity, handling all contractual and financial matters.

Under a Shipman Agreement, vessel management will be assigned under contract to a nominated professional ship management company, which will be responsible for full technical, commercial, and operational oversight.

Key Points

- Investor contributes 30% of the vessel's value

- The remaining 70% is financed through the HEAD OWNER of the vessel

- A 5-year fixed time charter (TC) is arranged before acquisition, ensuring stable and predictable revenue from day one.

Charter income is split daily

-- A fixed portion is allocated to the FINANCIER to recover its 70% share plus a profit margin.

- Remaining income flows to the Investor.

- Upon completion of the 5-year term, the FINANCIER's interest is fully repaid, and the Investor also assumes the100% ownership of the vessel

Exit Clause

The Investor may choose to exit at any time by selling the vessel.

In such a case:

• The unpaid portion of the Seller’s 70% stake must be repaid in full from the proceeds.

• Any outstanding operational obligations or liabilities must be settled.

• The investor will not be liable towards the Chartering in this case.

This provides flexibility and liquidity without compromising the FINANCIER's 70% position.

Operational Responsibilities

The Investor under contract transfers the responsibilities to the manager, who assumes complete control of the vessel’s management, including:

• Daily operations

• Technical and class compliance

• Commercial management and reporting

• Ensuring that the vessel remains in good standing under the TC obligations.

The FINANCIER of the 70% remains financially passive, without involvement in daily activities.

Strategic Advantages & Rationale

High-Leverage, Low-Cost Financing:  Traditional banks offer only 50–55% financing at high interest rates. A1 charterers can provide up to 75% coverage via embedded leaseback/TC structures at more attractive terms.

Guaranteed Employment: A 5-year TC contract ensures revenue regardless of market volatility.

Optimized Yield: Structure allows flexibility:

• Fixed rate charter

• Index-linked rate (e.g. BSI + margin)

• Floor rate + profit share - allowing yield optimization

Strong Market Positioning: Association with a top-tier charter boosts vessel credibility and ensures commercial visibility.

Attractive Returns: Based on conservative assumptions, the model yields an average 15.55% annual ROE with upside potential in stronger freight markets.

Full ownership without traditional bank debt: By the end of year 5, the Investor owns the vessel outright — financed entirely through operational performance, not bank liabilities.

Summary of Investor Benefits

- Entry into the shipping market with up to 30% capital requirement

- Pre-secured 5-year charter ensures predictable cash flow and return

- No bank exposure or personal guarantees

- 100% ownership of the vessel at term end

- Optional early exit offers flexibility and liquidity

- Investment without RISK. Even in the case of a global war, the asset (vessels) is under the Investor ownership

This venture offers a low-risk, high-potential path into global shipping - combining asset-backed security, guaranteed revenue, and a clear exit strategy.

It is tailored for investors seeking a hands-off, professionally managed investment in one of the world’s most essential industries.