View more on these topics

Abbey Shipping takes to the investment waters

Noble & Company is aiming to raise up to £4.7m for its Abbey Shipping enterprise investment scheme (EIS).

The EIS gives investors an opportunity to invest in a Romanian-built double-hulled ship, the Santa Ana, which will be used for the transportation of oil products. The ship is valued at $22m and 75 per cent of the purchase price is being raised through a bank loan with a repayment period of seven years. It is currently at sea, transporting gasoline, jet fuel and kerosene, so a physical inspection of the ship has not yet been possible.

Abbey Shipping has negotiated an initial charter lasting 11 months and 29 days with Santa Ana Tankers, which will commence when Abbey Shipping takes ownership of the Santa Ana. After this, the ship will be available for charter and will be assisted in this by Pacific Basin UK for a fee of $90,000 a year. Ship management company IndoChina UK will maintain the ship and supply crew for a fee of $102,000 a year.

As well as EIS tax reliefs, investors in this EIS could benefit from the tax advantages granted to shipping companies under the UK Tonnage Tax rules. Investors also get a degree of asset backing, since the ship can be sold to produce capital gains.

However, this EIS is likely to be of interest only to investors who are prepared to take high risks. The charter market is cyclical and dependent on factors such as freight rates, which could fluctuate and impact on the ship&#39s earnings. There is also no guarantee that further charters will follow, since demand for oil tankers is related to demand for oil products, and this would affect profits for shareholders.

Recommended

Portman and Sun Bank merge teams

Portman Building Society and specialist lending subsidiary Sun Bank are combining their intermediary sales teams although Sun Bank will remain a separate operation with its own staff, branding and product range. The new team of 12 will be headed by associate director (group intermediary sales) Paul Howard.

Chancellor berated for &#39poor&#39 job on finance policy

In the increasingly difficult climate for the industry, dispirited advisers have slammed Gordon Brown and the Government&#39s financial services policy.According to the survey, IFAs have become increasingly disillusioned with Brown in the past year, with 88 per cent believing that the Chancellor has not done a good job in establishing a favourable climate for private […]

Clerical Medical International – Growth Lock-in Fund

Monday, 10 March 2003 Type: Capital guaranteed fund Aim: Sterling &#45 growth linked to FTSE 100 and JPMorgan UK government bond indices, Euros &#45 growth linked to Dow Jones Eurostoxx 50 and JPMorgan Eurozone government bond indices, US dollars &#45 growth linked to S&P 500 and JPMorgan US government bond indices Minimum investment: £15,000, Euros […]

Pru may consider applying for waiver

Prudential says it is now considering applying for a solvency waiver despite initially claiming that it would not. It says the move would be a purely technical issue as it moves to manage its business on a realist rather than statutory basis. The company has not relied on future profits this year.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com