Danish Ship Finance has been committed to ship financing since 1961 and is a trusted partner for Danish and international shipping companies. We are a highly specialised niche player dedicated to serving our customers to the highest standards of business.
We operate a loan book of approximately USD 6 billion secured by first priority mortgages in 531 vessels. Our team of 80 people work out of one office in Copenhagen. The ship finance operation is supported by our in-house expertise within shipping research, marine insurance and marine surveillance.
We are funded by the issuance of covered bonds on NASDAQ OMX Nordic and has been assigned an A bond rating and a BBB+ issuer rating by Standard and Poor’s (with a negative outlook). As a ship finance institute, we are supervised by the Danish Financial Supervisory Authority.
The objective of Danish Ship Finance is to provide ship financing in Denmark. In addition, the company provides ship financing in the international market, so long as such activities do not unnecessarily limit the company’s Danish operations.Read more
The management is responsible for the day-to-day management, while the Board of Directors defines the principles of Danish Ship Finance's operations.Read more
The Board of Directors of Danish Ship Finance has 11 members. 8 are elected by the shareholders in general meeting, and the remaining 3 are elected by the company's employees.
In September 2018, the Danish FSA conducted an inspection at Danish Ship Finance A/S (Danmarks Skibskredit A/S).
The inspection covered the areas of the company's management, securities, funding and liquidity, IT, group matters, outsourcing and operational risks.
The inspection resulted in the issuance of one order by the Danish FSA.
Danish Ship Finance was ordered by the FSA to assess the extent to which the credit spread risk should be covered in the determination of the internal capital adequacy requirement. Danish Ship Finance complied with the order and, at 30 September 2018, made an add-on of DKK 365 million to the internal capital adequacy requirement.
In September and October 2016, the Danish FSA conducted a credit review at Danish Ship Finance A/S (Danmarks Skibskredit A/S).
The FSA reviewed the company’s credit policy, business procedures and reporting in the area. Moreover, the FSA reviewed 25 loan exposures in total. The FSA further reviewed the rules of procedure of the Board of Directors and the written guidelines of the Executive Board with a particular focus on the credit area.
In June 2015, the Danish FSA conducted an inspection (functional examination) of Danish Ship Finance A/S (Danish Ship Finance).
The inspection covered a range of selected areas, including the company’s organisation and management, credit area, securities trading and funding, audit, risk management function, compliance function, capital adequacy, solvency and liquidity statements as well as IT security.
All other content of the statement has been noted.
Danish Ship Finance is governed by the act on a ship finance institute. The act includes the legislative basis for the conversion in 2005. The company is also governed by the executive order on a ship finance institute.
According to the executive order on a ship finance institute the company, in its capacity of issuer of bonds on NASDAQ Copenhagen, is also subject to parts of the Executive Order on the Issuance of Bonds by Mortgage Credit Institutions, the Balance Principle, Interest Rate and Exchange Rate Risks.
Furthermore, the company is via the executive order on a ship finance institute subject to parts of the Danish Financial Business Act, which is the common set of rules governing banks, mortgage credit institutions and insurance companies, etc. in Denmark. The company is subject to the provisions of this Act with respect to good practice, ownership and management, capital structure of financial enterprises, annual report, audit and appropriation of profit for the year, intervention in or cessation of the financial enterprise and penalties.
Danish Ship Finance is exempt from the EU credit institution directives. In practice, this means that, unlike other Danish banks and mortgage credit institutions, the company is not subject to a limitation in respect of large customers. Instead, the company is under an obligation to determine rules on risk diversification, including risks associated with lending. The diversification rules are described in the annual report.
In addition to the rules stipulated by the authorities, the company is governed by the articles of association of Danish Ship Finance, which comply with the provisions of the Danish Companies Act. The company’s in-house activities are also governed by a set of policies that may be more restrictive than the external regulation. These policies have been adopted by the Board of Directors.