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.
Danish Ship Finance is a stable and reliable source of short-term and long-term loan capital for shipowners in all stages of the shipping cycle and it intends to be a competent and trustworthy partner to its customers and financial counterparties as well as other stakeholders.
Danish Ship Finance aims to obtain satisfactory financial results for its owners and is therefore dedicated to creating value in the form of controlled growth in lending while focusing on high credit quality and appropriate diversification in the loan portfolio.
Danish Ship Finance has progressed through cooperation with the Danish maritime sector, and the vision is that: “Danish Ship Finance is to be the most recognised and stable provider of financing for reputable shipowners”.
The history of Danish Ship Finance dates back to 1961 when the company commenced its ship financing operations under the auspices of Danmarks Skibskreditfond. Danmarks Skibskreditfond was founded on 6 June 1961 by Danish banks, insurance companies, shipping companies, shipyards (represented by the relevant trade associations) and Danmarks Nationalbank. No capital was contributed to Danmarks Skibskreditfond, but the members of the four above-mentioned trade associations and Danmarks Nationalbank subscribed for the foundation’s guarantee capital.
The objective of establishing Danmarks Skibskreditfond was to create a permanent source of funding for Danish shipowners and newbuildings from Danish shipyards and thereby provide a financial foundation for the ongoing development of the Danish maritime sector. This main objective still applies today.
Until the mid-1990s, the foundation was engaged in the financing of vessels built in Danish shipyards. Since 1997, the mandate has been gradually extended to the financing of vessels that are neither built in Denmark nor owned by Danish shipowners.
In 2005, Danmarks Skibskreditfond was converted into a limited liability company. The conversion was based on the Framework Agreement dated 17 January 2005 between Danmarks Skibskreditfond, the Danish Ministry of Economic and Business Affairs and Danmarks Nationalbank. The main objective of the conversion was to reform the framework for Danish Ship Finance's future operations, including a partial adjustment of the rules to match the rules applicable to other financial businesses.
In 2015, the Board of Directors of Danish Ship Finance initiated a study of the company’s future strategic direction. As part of this process, the majority of shares (86.6%) in Danish Ship Finance A/S were sold to a consortium consisting of Axcel, PKA and PFA. The Danish Maritime Fund still owns 10% of the share capital, while the remaining 3.4% is owned by a number of minority shareholders.
As a result of the conversion of Danmarks Skibskreditfond to Danmarks Skibskredit A/S, The Danish Maritime Fund was established on 13 July 2005. Through ownership of Danish Ship Finance, the fund operates to ensure that ship financing operations will continue to be undertaken under the auspices of Danish Ship Finance to the benefit of Danish shipowners and/or shipyards.
The objective of the fund is to provide financial support for initiatives and measures to develop and promote Danish shipping and/or the Danish shipbuilding industry. This is achieved through financial support for research, technological advances and product innovation, training, recruitment and other initiatives with a maritime focus.
From 2005 until ultimo 2015, Danish Ship Finance has paid total dividends of DKK 588 millions to The Danish Maritime Fund.