Nordic lender SEB is looking to grow its shipping business at a time many European banks are pulling back from the industry, its new head of shipping says.
Hans Christian Kjelsrud joined the bank from Nordea at the start of the year, taking over its $8bn shipping book from Bjarte Boe, who moved to another internal position.
Kjelsrud told TradeWinds during an interview at Nor-Shipping that SEB has had a good shipping book for many years and has managed very well through the challenges of the last decade.
“We want to develop that business further both on the traditional lending side and on the capital markets side,” he said.
“Then everything from derivatives and FX, to commodities, where the bank is also strong.”
Adopting a wider approach to business fits the position being taken by major shipowners globally.
“The industry is looking at a broader toolbox in terms of their financing,” he said. “Most companies are looking to have diversified funding sources – which is probably wise.”
On the lending side, the executive says SEB has and 100 shipping customers and was looking to grow existing relationships while keeping the door open for “a select few new clients”.
Kjelsrud said he is comfortable with the size of the existing shipping book, but given its scale and amortizing nature a lot of business is required during the course of the year to keep it stable.
“We serve all of the big segments well,” he said, noting there was no focus on growing exposure to specific segments. “We have a balanced portfolio.”
In terms of capital markets activity Kjelsrud and his colleagues have had a busy month.
SEB’s name has been on the ticket of the major equity raises of 2020 Bulkers, Hunter Group and Klaveness Combination Carriers amid an explosion of activity in the Oslo system.
“It’s proof if you have a strong sponsor and a sound business plan there is capital out there,” Kjelsrud said.
“But obviously, the appetite, when you look at pricing of the public shipping companies, a lot of them are at a discount so it’s not as strong as it was during the boom times.
“Like on the lending side, on the investor side that capital has become more selective and in the last 10 years, since the financial crisis, there has been a fair share of disappointments.”
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