View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Markets
November 26, 2010updated 12 Apr 2017 4:18pm

Leasing loses a little lustre for transport sector

Aviation, rail and shipping companies have ranked asset finance as the seventh most likely source of funding for their business over the next two years.

By Claire Hack

Aviation, rail and shipping companies have ranked asset finance as the seventh most likely source of funding for their business over the next two years.

The transport sector chose government money (45%) and shareholder equity (42%) as the most likely sources.

Next in line were bank debt (35%), private equity investors (24%), capital markets (22%), and export credit (12%).

Off balance sheet finance was picked as a primary funding source by 10%.

The Way Ahead, Transport Survey 2010, a research report by law firm Norton Rose, questioned 679 transport industry representatives.

Norton Rose global head of transport Harry Theochari said: “I thought, last year, that we would begin to see many more new forms of finance, but this has not been the case.

“Leasing is still strong in aviation. Rail still looks to government money. In shipping, there have been no floats in London since 2008: people are taking active steps to go to New York because there are no debt markets.”

Asset finance was chosen as a primary source of funding by 9% of aviation, 8% of rail and 12% of shipping respondents.

It was also selected by 13% of respondents in Asia-Pacific, a greater proportion than for any other region.

The survey also showed that the transport sector is more optimistic about a return of liquidity to the market than it was a year ago.

Across all three sectors, 17% believed that a dissipation of the crisis had begun, and 14% expected it within 12 months.

Last year, the majority of respondents felt that the crisis would not dissipate for at least 12 months.

Theochari also pointed to confidence in China, which is now lending to the west, and to the Middle East, described as having “so much money”.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Thursday. The leasing industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Leasing Life