Event report by Sue Terpilowski OBE
It was a pleasure to open and close our WISTA UK event on 11 February 2026 at the London offices of Watson Farley & Williams, where we brought together an outstanding panel of experts to examine how maritime finance is evolving and why that evolution matters.
Shipping has always been a capital-intensive industry. But the way that capital is accessed is changing and changing rapidly. Our discussion focused on why shipping companies, banks and investors are increasingly looking beyond traditional bank lending towards debt capital markets (DCM) and securitisation structures as part of a broader funding strategy.
For many in the room from legal, banking, asset management and operational backgrounds, this was not theoretical. It was a practical conversation about how these structures are becoming part of mainstream maritime finance.
Moving Beyond Traditional Lending
Traditional bilateral bank loans have long underpinned shipping finance. However, regulatory capital pressures, evolving interest rate dynamics and the need for funding diversification are pushing both lenders and borrowers to explore alternatives.
Debt capital markets offer one such route. Rather than borrowing from a limited group of banks, companies can issue bonds or notes to a wide pool of institutional investors. These may take the form of standalone bond issuances. These Medium-Term Notes (MTN) programmes allow flexibility over timing and size, or asset-backed structures similar to aviation’s Enhanced Equipment Trust Certificates, adapted for maritime assets.
The attraction is clear: access to deeper liquidity pools, diversification of funding sources and, in some cases, more competitive pricing. As our panel emphasised, however, these solutions are not “one size fits all”. They require scale, preparation and a clear strategic objective.
Securitisation: Unlocking Asset Value
We also examined securitisation, which enables shipping companies to transfer income-generating assets, such as vessel portfolios or container lease receivables, into bankruptcy-remote special-purpose vehicles (SPVs) that then issue notes to investors.
These structures can:
- Transfer risk to investors
- Be structured with no recourse to the originator
- Provide bankruptcy remoteness protections
- Achieve enhanced credit ratings through structural design
For larger players in particular, securitisation can unlock liquidity from long-term assets and support fleet renewal and sustainability initiatives.
Scale, however, is critical. ABS-style transactions typically require significant deal size, often in the region of US$250 million or more, reflecting the upfront costs, reporting requirements, and structural complexity involved. This is sophisticated finance and it demands both expertise and long-term commitment.
Benefits, Challenges and Realism
One of the most valuable aspects of the evening was the honest balance between opportunity and challenge.
On the positive side, these structures offer:
- Greater standardisation of documentation
- More objective covenant frameworks
- Access to diversified investor bases
- Strategic flexibility for larger capital programmes
But they also bring:
- Higher upfront transaction costs
- Increased disclosure and ongoing reporting obligations
- More structured amendment processes
- Greater public market visibility
From a legal perspective, early analysis of bankruptcy remoteness, true sale mechanics and enforcement pathways is fundamental. These transactions are designed to create certainty and that certainty must be built in from the outset.
Geopolitics and the Funding Landscape
The discussion also considered the wider market context, including geopolitical tensions and increased caution around exposure to Chinese leasing structures. While we are not seeing a wholesale withdrawal, there is a clear trend towards funding diversification.
European banks are responding with more bespoke solutions, including back-leverage structures and “securitisation light” approaches where permitted by regulation. The message from the panel was clear: adaptability and flexibility will define the next phase of maritime finance.
What Could Accelerate Adoption?
Several factors were identified as potential accelerators:
- Continued regulatory pressure on traditional bank capital
- Institutional investors seeking yield in evolving rate environments
- Greater harmonisation across jurisdictions
- Potential ratification of frameworks such as the Cape Town Convention for maritime assets
Shipping may not always move at the pace of aviation in adopting international frameworks, but the direction of travel is unmistakable. Complex financing structures are no longer niche; they are increasingly part of the strategic toolkit for larger maritime players.
As was said in the closing remarks, access to capital underpins everything our industry seeks to achieve, from fleet renewal to decarbonisation. Understanding these evolving structures is therefore not optional; it is essential if our industry is to remain resilient, competitive and sustainable.
WISTA UK is proud to provide a platform for these important conversations, bringing together expertise across law, banking and asset management and highlighting the leadership role women continue to play across every part of maritime finance.
Chair and keynote speaker
Katie Shiels, Senior Associate, Watson Farley & Williams
Panellists
Alison Weal, Knowledge Counsel, Watson Farley & Williams
Karina Harper, Director, Transportation Finance, Structured Credit, Deutsche Bank
Holly Foster, Associate Director, Structuring & Business Development, Shipping Finance, Macquarie
Anna Wilkins, General Counsel, Australis Maritime
Our sincere thanks to Watson Farley & Williams for hosting and to our expert panel for an engaging and thought-provoking discussion.
