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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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Friday, 02 May 14
US WEEKLY COAL PRODUCTION RELATIVELY FLAT AT -0.1%, SAYS EIA
COALspot.com – United States the world's second largest coal producer, produced approximately 19.0 million short tons (mmst) of coal i ...
Friday, 02 May 14
DRY BULK MARKET SHOWING SIGNS OF COMEBACK - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market which has been hovering below the 1,000-point market (BDI) during the past couple of weeks, could be exhibiting signs of a s ...
Thursday, 01 May 14
INDONESIA EXPORT BAN POINTS TO QUESTIONS OVER CHINA'S LONG-TERM BAUXITE SUPPLY - WOOD MACKENZIE
China’s Bauxite demand forecast to reach 240 million tonnes by 2030
In light of the Indonesian mineral ore ban that came into force o ...
Thursday, 01 May 14
DRY BULK MARKET STILL REELING UNDER PRESSURE FROM VARIOUS FACTORS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market's revival is still overdue, as the industry's benchmark, the BDI is still lagging below the 1,000-point mark. In fac ...
Wednesday, 30 April 14
FREIGHT MARKET FOR DRY BULKERS STILL REMAINS WEAK - INTERMODAL
One week after the Easter holiday and the celebration for the resurrection of Christ, everybody expected to see a similar sign of a revival in t ...
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- Indogreen Group - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Barasentosa Lestari - Indonesia
- Global Business Power Corporation, Philippines
- Grasim Industreis Ltd - India
- The Treasury - Australian Government
- Posco Energy - South Korea
- Directorate General of MIneral and Coal - Indonesia
- Power Finance Corporation Ltd., India
- New Zealand Coal & Carbon
- Standard Chartered Bank - UAE
- Kapuas Tunggal Persada - Indonesia
- Indika Energy - Indonesia
- Eastern Energy - Thailand
- San Jose City I Power Corp, Philippines
- Bulk Trading Sa - Switzerland
- SN Aboitiz Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- GMR Energy Limited - India
- Trasteel International SA, Italy
- Agrawal Coal Company - India
- Sree Jayajothi Cements Limited - India
- Samtan Co., Ltd - South Korea
- GAC Shipping (India) Pvt Ltd
- IEA Clean Coal Centre - UK
- Formosa Plastics Group - Taiwan
- Parliament of New Zealand
- PetroVietnam Power Coal Import and Supply Company
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Dalmia Cement Bharat India
- Binh Thuan Hamico - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Cement Manufacturers Association - India
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- Planning Commission, India
- Romanian Commodities Exchange
- Star Paper Mills Limited - India
- ASAPP Information Group - India
- Kumho Petrochemical, South Korea
- SMG Consultants - Indonesia
- Iligan Light & Power Inc, Philippines
- PTC India Limited - India
- Bhatia International Limited - India
- Independent Power Producers Association of India
- Ministry of Mines - Canada
- Bharathi Cement Corporation - India
- Eastern Coal Council - USA
- Leighton Contractors Pty Ltd - Australia
- Directorate Of Revenue Intelligence - India
- SMC Global Power, Philippines
- Antam Resourcindo - Indonesia
- Wilmar Investment Holdings
- Maharashtra Electricity Regulatory Commission - India
- Ambuja Cements Ltd - India
- Sical Logistics Limited - India
- Chamber of Mines of South Africa
- Alfred C Toepfer International GmbH - Germany
- Tata Chemicals Ltd - India
- Global Green Power PLC Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Lanco Infratech Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jindal Steel & Power Ltd - India
- ICICI Bank Limited - India
- PNOC Exploration Corporation - Philippines
- Sojitz Corporation - Japan
- Karaikal Port Pvt Ltd - India
- Ministry of Finance - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- AsiaOL BioFuels Corp., Philippines
- Petron Corporation, Philippines
- Mercuria Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Carbofer General Trading SA - India
- Meenaskhi Energy Private Limited - India
- Rashtriya Ispat Nigam Limited - India
- Maheswari Brothers Coal Limited - India
- Wood Mackenzie - Singapore
- Timah Investasi Mineral - Indoneisa
- Bangladesh Power Developement Board
- Altura Mining Limited, Indonesia
- Vedanta Resources Plc - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bhoruka Overseas - Indonesia
- Mercator Lines Limited - India
- The University of Queensland
- Electricity Generating Authority of Thailand
- Edison Trading Spa - Italy
- Anglo American - United Kingdom
- Minerals Council of Australia
- VISA Power Limited - India
- CNBM International Corporation - China
- Toyota Tsusho Corporation, Japan
- Gujarat Electricity Regulatory Commission - India
- South Luzon Thermal Energy Corporation
- Aditya Birla Group - India
- The State Trading Corporation of India Ltd
- Sakthi Sugars Limited - India
- Central Java Power - Indonesia
- Interocean Group of Companies - India
- Coalindo Energy - Indonesia
- Bhushan Steel Limited - India
- Sarangani Energy Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Coal and Oil Company - UAE
- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Indian Oil Corporation Limited
- Vizag Seaport Private Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Price Waterhouse Coopers - Russia
- Savvy Resources Ltd - HongKong
- Indo Tambangraya Megah - Indonesia
- Makarim & Taira - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ceylon Electricity Board - Sri Lanka
- Renaissance Capital - South Africa
- Manunggal Multi Energi - Indonesia
- Madhucon Powers Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Holcim Trading Pte Ltd - Singapore
- Simpson Spence & Young - Indonesia
- Tamil Nadu electricity Board
- Rio Tinto Coal - Australia
- TeaM Sual Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- OPG Power Generation Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Bukit Baiduri Energy - Indonesia
- Medco Energi Mining Internasional
- GVK Power & Infra Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Kohat Cement Company Ltd. - Pakistan
- Globalindo Alam Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- McConnell Dowell - Australia
- CIMB Investment Bank - Malaysia
- Riau Bara Harum - Indonesia
- Ministry of Transport, Egypt
- Heidelberg Cement - Germany
- Singapore Mercantile Exchange
- Meralco Power Generation, Philippines
- International Coal Ventures Pvt Ltd - India
- Indonesian Coal Mining Association
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Kalimantan Lumbung Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Petrochimia International Co. Ltd.- Taiwan
- Coastal Gujarat Power Limited - India
- Mintek Dendrill Indonesia
- Indian Energy Exchange, India
- Ind-Barath Power Infra Limited - India
- Banpu Public Company Limited - Thailand
- Africa Commodities Group - South Africa
- Orica Australia Pty. Ltd.
- TNB Fuel Sdn Bhd - Malaysia
- Kepco SPC Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Deloitte Consulting - India
- White Energy Company Limited
- MS Steel International - UAE
- Miang Besar Coal Terminal - Indonesia
- Central Electricity Authority - India
- Malabar Cements Ltd - India
- Xindia Steels Limited - India
- Thiess Contractors Indonesia
- Latin American Coal - Colombia
- Baramulti Group, Indonesia
- LBH Netherlands Bv - Netherlands
- Energy Development Corp, Philippines
- Salva Resources Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Oldendorff Carriers - Singapore
- Australian Coal Association
- Goldman Sachs - Singapore
- Therma Luzon, Inc, Philippines
- Borneo Indobara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Economic Council, Georgia
- Bayan Resources Tbk. - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- Jaiprakash Power Ventures ltd
- Asmin Koalindo Tuhup - Indonesia
- Energy Link Ltd, New Zealand
- India Bulls Power Limited - India
- Electricity Authority, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Thai Mozambique Logistica
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Attock Cement Pakistan Limited
- Australian Commodity Traders Exchange
- Port Waratah Coal Services - Australia
- Bukit Makmur.PT - Indonesia
- Metalloyd Limited - United Kingdom
- London Commodity Brokers - England
- Gujarat Sidhee Cement - India
- IHS Mccloskey Coal Group - USA
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PowerSource Philippines DevCo
- Marubeni Corporation - India
- Kideco Jaya Agung - Indonesia
- Georgia Ports Authority, United States
- Jorong Barutama Greston.PT - Indonesia
- Larsen & Toubro Limited - India
- Videocon Industries ltd - India
- Sinarmas Energy and Mining - Indonesia
- Chettinad Cement Corporation Ltd - India
- Siam City Cement - Thailand
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Orica Mining Services - Indonesia
- Mjunction Services Limited - India
- Commonwealth Bank - Australia
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