ABSTRACT
Building and purchasing a vessel is a multi-million-dollar investment on the part of shipowners. As such, it requires careful planning in terms of negotiation and drafting of both the shipbuilding contract and the related financing arrangements, to be effected through either ship mortgages 1 or capital leases, such as finance-based bareboat charterparties. 2 In particular, financing bareboat charterparties of new-builds, on which this chapter focuses, constitute rather complex commercial transactions, involving the negotiation of at least three types of contract between different players in the shipping and financing industry, namely the shipbuilding contract, 3
