Publication
Government Investigations in Singapore 2025
We have contributed the Singapore chapter of Getting the Deal Through, Government Investigations 2025.
Global | Publication | June 2023
In our previous publication in April 2023, we reported on the recent regulatory changes impacting shipping JOLCOs. As a result of those changes, a newbuild vessel to be owned through a silent partnership (tokumei kumiai or TK) structure may no longer be eligible for accelerated tax benefits (i.e. “special depreciation”) unless that vessel is certified as an "advanced vessel" complying with specific environmental and IT performance requirements, as more particularly set out in our original article.
Although the new regulations do make it more difficult to benefit from special depreciation, market response to those regulations seems to have been positive, with investors and arrangers proactively looking to adapt to this reform and actively engaging in dialogue to consider the necessary environmental and technological implications for their JOLCO transactions. Perhaps this should come as no surprise, particularly given the increased focus on sustainability and the reduction in carbon intensity of the shipping industry as a whole. If these conversations keep taking place and there is an open dialogue between shipbuilders, shipowners and financiers, it may well be the case that JOLCOs under the new regime will remain attractive financing structures for more technologically and environmentally advanced vessels, which would be positive news for shipowners looking to finance the transition to a greener shipping industry.
As to the more regulatory aspects of the new regulations, the amendments function as a part of, and in conjunction with, revisions made to the Maritime Transportation Act of Japan (Act No. 187 of 1949, as amended) (the Act) by a new act promulgated on 12 May 2023 (“Act on Partial Revisions to the Maritime Transportation Act”, Act No. 24 of 2023). In addition, The Ministry of Land, Infrastructure, Transport and Tourism announced that a Cabinet Order was to be promulgated on 2 June 2023, thereby fixing the formal enforcement date for the part of the revisions relevant to the certification of “advanced vessels” to be 1 July 2023. This has the following practical implications in the context of newbuild JOLCOs:
Co-authored by Saori Takahashi.
Publication
We have contributed the Singapore chapter of Getting the Deal Through, Government Investigations 2025.
Publication
The private credit market and direct lending have grown and diversified immensely in the past decade, offering alternative sources and terms of debt compared to those historically provided by the syndicated leveraged loan and public issuance markets. Consequently, they are fast becoming pivotal components in the capital ecosystem, so much so that the Bank of England consider that the private credit market is currently responsible for approximately $1.8 trillion of debt issuance, which is four times its size in 2015. This growth has been particularly pronounced in Europe and the US but there has also been significant activity in Asia.
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The EU’s Artificial Intelligence Regulation, commonly referred to as the AI Act, is expected to come into force during the summer of 2024 (the AI Act). The AI Act will be the first comprehensive legal framework for the use and development of artificial intelligence (AI), and is intended to ensure that AI systems developed and used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly.
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