Barents Re continues the development of its international Bonds business with its presence at an industry event co-hosted by the Galician Shipping Association (ACLUNAGA) in Vigo on 19thApril. The purpose of the event was to inform senior representatives of all interested parties of the security which reinsurance can bring to the structuring of vessel construction deals.
Luis Fernández, Barents Re’s Bonds Manager, discussed how shipbuilders, shipowners, banks and financial institutions can all benefit from the use of an insurance bond to release the shipyards’ bank credit lines and ease the problems arising from the complexities of large shipbuilding transactions. Reinsurance can provide new and fresh capacity to the shipbuilding industry giving alternative and complementary solutions to the traditional bank guarantees thereby diminishing the financial risks associated with big shipbuilding projects.
Barents Re’s collaboration with the shipbuilding industry is a further example of the company’s niche focus which has proven to be an essential driver of its ongoing success.
Further information on the event is available via the following link: