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Thursday, 27 February 14
SHIPPING LOANS WORTH $5 BILLION HAVE CHANGED HANDS OVER THE PAST YEAR, AS FUNDS INVEST IN SHIPPING - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Funds investing in shipping has been the "talk of the town" over the past couple of years, as institutional investors, private equity and hedge funds have all emerged as newcomers to the shipping financing segment, often assuming the role of traditional shipping banks, which have exited the market, or cut their exposure. According to the latest weekly report from shipbroker Intermodal, the vast majority of those funds have been consumed in buying up shipping loans. "About $5 billion in shipping loans have changed hands in the past year and demand is driving loan prices to levels almost in line with book values", said the shipbroker.
According to an analysis by Intermodal's SnP broker George Dermatis, these funds "do not hesitate taking over entire fleets and even align themselves with several managers in an insatiable escapade to take over debts and even ships/assets on their balance sheets. Funds tolerate systemic risk much more than traditional banks that are massively exiting or reducing their exposure in the sector. So one could argue that one player is filling up the void the other creates. Therein lays the paradox" he noted.
Dermatis said that "the characteristics of traditional banks are undoubtedly much more to the liking of traditional shipowners; no exit strategy other than full debt repayment, name lending based on interpersonal relationships, which in some cases dates back decades, experience over several shipping cycles and the list goes on. The industry perceives this as an overall alignment of interests. Private Equity funds stand more or less at the other side of the road on all of these points and that creates nervousness to most being afraid of how fast these investors can climb the learning curve or lose their interest in the process".
According to the broker, "the truth is that shipping largely remains in the hands of its professionals, who live and breathe the essence of this sector and who -to a large extent- have assigned a negative connotation to the publicity that funds along with capital markets and OTC offerings gather. So, despite the fact that financing from these sources has in many times arrived when no other source of funding was available, the truth is that our industry still views them with skepticism. My personal feeling is that people spend too much time “loving or hating” a way of financing whose significance has been grossly overestimated - at least for the time being", Dermatis mentioned.
He went on to add that "despite the fact that numbers -especially last year's- are indeed impressive, it seems that equity funds do not contribute more than $6-7bn on average per year, which seems like a drop in the ocean when compared to conventional debt financing by banks which continues to provide around $250bn annually according to Marine Money. During the peak times of 2008, these figures stood close to $500bn (!!!) and this should therefore be sufficient to hush down fears that private equity alone could lead to a bubble or that it could even distort market reality... The main worry linked to overcapacity remains and the finance gap on newbuilding orders persists if not broadens. The latest available data speaks of figures of over $125bn... Whilst the presence of “new” money is duly noted, we all need to realize that the industry must be able to carry its own weight. If that means changing our processes, transparency levels, corporate responsibility standards, etc. in order to bridge this gap and attract a greater share of their attention, then maybe this is a change we should embrace", Dermatis concluded.
Meanwhile, in the dry bulk market this past week, things continued to improve on the back of rates for the smaller size segments holding on to their levels and those for Capes correcting upwards, said Intermodal, while the spill-overs of the improved sentiment have yet to affect the Panamax market. Nevertheless, the BDI ended yesterday on yet another higher note, ending the session at 1,222 points.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Thursday, 08 May 14
'TRIAL BY MEDIA, TRIAL BY LAW' - A REPORT FROM TRACK 1 OF BIMCO'S ANNUAL CONFERENCE DUBAI 2014
KNOWLEDGE TO ELEVATE
Aiming to bring a very different type of event into their annual conference, BIMCO presented ‘Double Jeopardy &n ...
Thursday, 08 May 14
INDONESIAN COAL PRICE REFERENCE IN MAY CRASHES THROUGH $74
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia has revised down again the coal bench mark price by US$ 1.21 / MT to ...
Wednesday, 07 May 14
THE DRY BULK MARKET HAS NOTED ANOTHER WEEKLY POSITIVE GAIN
Chartering (Wet: Softer- / Dry: Stable+)
The Dry Bulk market has noted another weekly positive gain, driven by the Capesize segment, but we ne ...
Wednesday, 07 May 14
SGX ENHANCES ITS COMMODITIES PRODUCT OFFERING
COALspot.com: SGX is building up its bulk commodity product offerings with 9 more derivative contracts over the next 2 months, subject to regula ...
Tuesday, 06 May 14
NEWCASTLE COAL EXPORT SLIPS 7.92% WEEK ON WEEK
COALspot.com: In the week ended 07:00 hours 5 May 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland ...
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- Agrawal Coal Company - India
- GN Power Mariveles Coal Plant, Philippines
- GVK Power & Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
- Metalloyd Limited - United Kingdom
- Sical Logistics Limited - India
- Videocon Industries ltd - India
- Ceylon Electricity Board - Sri Lanka
- Indo Tambangraya Megah - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- ASAPP Information Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Minerals Council of Australia
- TeaM Sual Corporation - Philippines
- McConnell Dowell - Australia
- ICICI Bank Limited - India
- Mercuria Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Commonwealth Bank - Australia
- OPG Power Generation Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- PowerSource Philippines DevCo
- Central Java Power - Indonesia
- Orica Australia Pty. Ltd.
- Dalmia Cement Bharat India
- Directorate General of MIneral and Coal - Indonesia
- Price Waterhouse Coopers - Russia
- Energy Development Corp, Philippines
- Vedanta Resources Plc - India
- Ministry of Finance - Indonesia
- Formosa Plastics Group - Taiwan
- Coalindo Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- International Coal Ventures Pvt Ltd - India
- GMR Energy Limited - India
- Tata Chemicals Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Mintek Dendrill Indonesia
- Global Green Power PLC Corporation, Philippines
- Africa Commodities Group - South Africa
- Baramulti Group, Indonesia
- Bharathi Cement Corporation - India
- Coal and Oil Company - UAE
- Georgia Ports Authority, United States
- Bhushan Steel Limited - India
- Goldman Sachs - Singapore
- Riau Bara Harum - Indonesia
- Ind-Barath Power Infra Limited - India
- Kapuas Tunggal Persada - Indonesia
- Energy Link Ltd, New Zealand
- Chamber of Mines of South Africa
- Electricity Generating Authority of Thailand
- Deloitte Consulting - India
- SMC Global Power, Philippines
- Maheswari Brothers Coal Limited - India
- Medco Energi Mining Internasional
- Siam City Cement PLC, Thailand
- Parry Sugars Refinery, India
- Directorate Of Revenue Intelligence - India
- Miang Besar Coal Terminal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Meenaskhi Energy Private Limited - India
- Planning Commission, India
- Bangladesh Power Developement Board
- Cement Manufacturers Association - India
- Bulk Trading Sa - Switzerland
- Asmin Koalindo Tuhup - Indonesia
- Independent Power Producers Association of India
- Economic Council, Georgia
- Madhucon Powers Ltd - India
- Sojitz Corporation - Japan
- Bukit Baiduri Energy - Indonesia
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Pendopo Energi Batubara - Indonesia
- Eastern Coal Council - USA
- Standard Chartered Bank - UAE
- Borneo Indobara - Indonesia
- LBH Netherlands Bv - Netherlands
- Edison Trading Spa - Italy
- Savvy Resources Ltd - HongKong
- Attock Cement Pakistan Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Mineral Development Corp Ltd - India
- Iligan Light & Power Inc, Philippines
- Grasim Industreis Ltd - India
- Tamil Nadu electricity Board
- Kaltim Prima Coal - Indonesia
- SMG Consultants - Indonesia
- Port Waratah Coal Services - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- The State Trading Corporation of India Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Posco Energy - South Korea
- Singapore Mercantile Exchange
- Siam City Cement - Thailand
- Lanco Infratech Ltd - India
- Indogreen Group - Indonesia
- PTC India Limited - India
- Kideco Jaya Agung - Indonesia
- Sarangani Energy Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Parliament of New Zealand
- IEA Clean Coal Centre - UK
- Global Coal Blending Company Limited - Australia
- Oldendorff Carriers - Singapore
- The University of Queensland
- Sakthi Sugars Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Eastern Energy - Thailand
- Electricity Authority, New Zealand
- Carbofer General Trading SA - India
- New Zealand Coal & Carbon
- Bhatia International Limited - India
- Renaissance Capital - South Africa
- Merrill Lynch Commodities Europe
- Ambuja Cements Ltd - India
- South Luzon Thermal Energy Corporation
- Barasentosa Lestari - Indonesia
- Jindal Steel & Power Ltd - India
- Rio Tinto Coal - Australia
- Therma Luzon, Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Global Business Power Corporation, Philippines
- Marubeni Corporation - India
- CIMB Investment Bank - Malaysia
- Ministry of Mines - Canada
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jaiprakash Power Ventures ltd
- Billiton Holdings Pty Ltd - Australia
- Kepco SPC Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Aditya Birla Group - India
- Intertek Mineral Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Petron Corporation, Philippines
- Xindia Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Heidelberg Cement - Germany
- Sree Jayajothi Cements Limited - India
- Sindya Power Generating Company Private Ltd
- Kobexindo Tractors - Indoneisa
- Altura Mining Limited, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- San Jose City I Power Corp, Philippines
- Indian Energy Exchange, India
- Latin American Coal - Colombia
- Gujarat Sidhee Cement - India
- Karbindo Abesyapradhi - Indoneisa
- Thai Mozambique Logistica
- Central Electricity Authority - India
- Makarim & Taira - Indonesia
- India Bulls Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Holcim Trading Pte Ltd - Singapore
- Semirara Mining and Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Kumho Petrochemical, South Korea
- Bukit Asam (Persero) Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Meralco Power Generation, Philippines
- Trasteel International SA, Italy
- Antam Resourcindo - Indonesia
- Star Paper Mills Limited - India
- SN Aboitiz Power Inc, Philippines
- Romanian Commodities Exchange
- Salva Resources Pvt Ltd - India
- VISA Power Limited - India
- Manunggal Multi Energi - Indonesia
- Ministry of Transport, Egypt
- MS Steel International - UAE
- Orica Mining Services - Indonesia
- Thiess Contractors Indonesia
- Essar Steel Hazira Ltd - India
- Australian Coal Association
- Mjunction Services Limited - India
- Straits Asia Resources Limited - Singapore
- Wilmar Investment Holdings
- White Energy Company Limited
- Vizag Seaport Private Limited - India
- Semirara Mining Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Karaikal Port Pvt Ltd - India
- Anglo American - United Kingdom
- Bahari Cakrawala Sebuku - Indonesia
- Power Finance Corporation Ltd., India
- Wood Mackenzie - Singapore
- Malabar Cements Ltd - India
- Simpson Spence & Young - Indonesia
- Interocean Group of Companies - India
- Timah Investasi Mineral - Indoneisa
- Indian Oil Corporation Limited
- Indonesian Coal Mining Association
- Maharashtra Electricity Regulatory Commission - India
- Chettinad Cement Corporation Ltd - India
- Larsen & Toubro Limited - India
- The Treasury - Australian Government
- Bhoruka Overseas - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Kartika Selabumi Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Mercator Lines Limited - India
- London Commodity Brokers - England
- European Bulk Services B.V. - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Sinarmas Energy and Mining - Indonesia
- CNBM International Corporation - China
- Australian Commodity Traders Exchange
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