Acting on behalf of borrowers and lenders all over the world, we carry out our task by advising on loan documentation and preparing the corresponding security packages, ranging from assignments of freights and insurance to corporate guarantees and ship mortgages on Spanish flagged vessels as security for both construction and permanent loan transactions.

We are also retained in complex Spanish tax lease structures to advise on and implement general and shipping benefits, such as the interest rate subsidy under Royal Decree 442, the Special Shipping Registry of the Canary Islands, the Spanish tonnage tax and both the finance lease agreement and the economic interest grouping tax systems. Although it depends on each particular transaction, in general terms a Spanish tax lease will involve a ship newbuilding for a lease company, which will enter into a leasing agreement over the vessel with an economic interest grouping. The latter will enter into a bareboat charter of the vessel with the borrower, with a call option in favour of the borrower at the end of the charter. Further to that, the economic interest grouping and the borrower may enter into a separate put option agreement and the borrower and the lease company may enter into direct put and call options arrangements. Additionally, there may be long-term vessel chartering arrangements.

We provide full support in the documentation package for the structure, consisting of ship sale and transfer arrangements, finance lease agreements, bareboat charter parties and put and call option agreements, as well as master agreements, payment mechanisms and other documents needed as per the particular deal.