Dutch shipbuilder Damen Shipyards Group is moving into shipowning in a new leasing venture with US alternative financier EnTrust Global.
The yard group and EnTrust's Purus Marine are forming a joint venture to own and lease out environmentally advanced newbuildings to help operators with energy transition financing.
Purus was set up by EnTrust as a shipping and infrastructure financing company.
The new partnership, named DP Lease, aims to provide flexible and attractively priced long-term lease financing to solve the funding gap created by additional spending requirements needed to lower shipping's carbon footprint.
DP Lease will own Damen-built vessels in a number of sectors, including ferries, offshore wind power and towage.
This will eventually be extended to short-sea vessels and inland craft.
Timing right?
The two sides believe their timing is "excellent", as the partnership will be able to support numerous public transport contracts under development in northern Europe.
Jan-Willem van Helden, managing director of Damen Financial Services (DFS), said DP will help fleet renewal efforts.
DFS is a newly created unit formed in response to growing demand for financing solutions from Damen’s clients, enabling them to treat capital expenditures as operating expenses.
Svein Engh, senior advisor and director of Purus Marine, added: "We believe this partnership structure is very creative and look forward to helping the various maritime sectors move towards a greener future."
EnTrust Global manages more than $19bn in assets.
In December, the group said it was lining up new eco-shipping investments after closing its latest fundraising drive at $2.1bn.
The company said it had raised $925m for its Blue Ocean Funds since April alone.
Bespoke financing
Blue Ocean is part of EnTrust's private debt and real asset division, offering funds to vessel owners and operators.
Damen operates 36 shipyards worldwide.
Julian Proctor, CEO of Purus Marine, said: "We believe DP Lease will provide its customers with bespoke vessel financing, which is not only cost-effective, but also produces a significant positive environmental impact."
He added: "With its track record in the construction of fully electric tugs, ferries and dredgers and its practice of standardised shipbuilding, Damen is well positioned to facilitate the fast delivery of a reliable fleet of sustainable vessels."
