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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 $125bn... Whilst the presence of “new” money is duly noted, we all need to realize that the industry must be able to carry its own weight. If that means changing our processes, transparency levels, corporate responsibility standards, etc. in order to bridge this gap and attract a greater share of their attention, then maybe this is a change we should embrace", Dermatis concluded.
Meanwhile, in the dry bulk market this past week, things continued to improve on the back of rates for the smaller size segments holding on to their levels and those for Capes correcting upwards, said Intermodal, while the spill-overs of the improved sentiment have yet to affect the Panamax market. Nevertheless, the BDI ended yesterday on yet another higher note, ending the session at 1,222 points.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Friday, 25 April 14
US PRODUCED APPROXIMATELY 19 MILLION SHORT TONS OF COAL IN A WEEK
COALspot.com – United States the world's second largest coal producer, produced approximately 19.0 million short tons (mmst) of coal i ...
Friday, 25 April 14
2ND MYANMAR ELECTRIC POWER CONVENTION 2014 IS THE GATEWAY TO MYANMAR POWER INDUSTRY!
Press Release: 2nd Myanmar Electric Power Convention (MEPC) 2014 is scheduled on 21-23 October, 2014 at Traders Hotel in Yangon, Myanmar. MEPC o ...
Friday, 25 April 14
DRY BULK MARKET LOOKING FOR NEW TRACTION - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market seems to have gained its footing after the past few dissapointing weeks, during which the Baltic Dry Index (BDI) shedded mos ...
Thursday, 24 April 14
HANDY : A FLOW OF FRESH REQUIREMENTS LIFTING THE PACIFIC SLOWLY TO US$ 10-11 K BSS SINGAPORE FOR COAL ROUNDS
Handy
There is still no place to hide in the Atlantic for the smaller but flexible sizes. Slow and weak seems to be the headlines, although th ...
Wednesday, 23 April 14
EUROPE WOULD BE HARD PRESSED TO REPLACE RUSSIAN GAS, FITCH RATINGS SAYS
A ban on Russian gas imports to the EU would cause substantial disruption to Europe's economy and industry, Fitch Ratings says. In the immed ...
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- Cement Manufacturers Association - India
- Attock Cement Pakistan Limited
- Sindya Power Generating Company Private Ltd
- Toyota Tsusho Corporation, Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
- IHS Mccloskey Coal Group - USA
- CNBM International Corporation - China
- The State Trading Corporation of India Ltd
- London Commodity Brokers - England
- Bayan Resources Tbk. - Indonesia
- Interocean Group of Companies - India
- MS Steel International - UAE
- VISA Power Limited - India
- SMC Global Power, Philippines
- Indogreen Group - Indonesia
- Agrawal Coal Company - India
- Oldendorff Carriers - Singapore
- Uttam Galva Steels Limited - India
- International Coal Ventures Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Bulk Trading Sa - Switzerland
- Gujarat Sidhee Cement - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ambuja Cements Ltd - India
- Australian Coal Association
- Global Business Power Corporation, Philippines
- Medco Energi Mining Internasional
- Anglo American - United Kingdom
- India Bulls Power Limited - India
- Vizag Seaport Private Limited - India
- Kapuas Tunggal Persada - Indonesia
- Kaltim Prima Coal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- TeaM Sual Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Goldman Sachs - Singapore
- New Zealand Coal & Carbon
- Vedanta Resources Plc - India
- Savvy Resources Ltd - HongKong
- GMR Energy Limited - India
- Bukit Makmur.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- Global Green Power PLC Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Barasentosa Lestari - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Borneo Indobara - Indonesia
- Sojitz Corporation - Japan
- Therma Luzon, Inc, Philippines
- Antam Resourcindo - Indonesia
- Parry Sugars Refinery, India
- Edison Trading Spa - Italy
- LBH Netherlands Bv - Netherlands
- ICICI Bank Limited - India
- Singapore Mercantile Exchange
- Trasteel International SA, Italy
- Renaissance Capital - South Africa
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- Karaikal Port Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- SN Aboitiz Power Inc, Philippines
- Bhatia International Limited - India
- Price Waterhouse Coopers - Russia
- Simpson Spence & Young - Indonesia
- Madhucon Powers Ltd - India
- Meenaskhi Energy Private Limited - India
- Standard Chartered Bank - UAE
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Baiduri Energy - Indonesia
- Riau Bara Harum - Indonesia
- Samtan Co., Ltd - South Korea
- Eastern Coal Council - USA
- San Jose City I Power Corp, Philippines
- Wood Mackenzie - Singapore
- Cigading International Bulk Terminal - Indonesia
- Aditya Birla Group - India
- Indian Oil Corporation Limited
- Banpu Public Company Limited - Thailand
- Jaiprakash Power Ventures ltd
- Xindia Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Mjunction Services Limited - India
- Salva Resources Pvt Ltd - India
- PowerSource Philippines DevCo
- Vijayanagar Sugar Pvt Ltd - India
- The University of Queensland
- Formosa Plastics Group - Taiwan
- OPG Power Generation Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- European Bulk Services B.V. - Netherlands
- Baramulti Group, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Africa Commodities Group - South Africa
- Coalindo Energy - Indonesia
- Central Java Power - Indonesia
- Coastal Gujarat Power Limited - India
- Deloitte Consulting - India
- Orica Mining Services - Indonesia
- Meralco Power Generation, Philippines
- Commonwealth Bank - Australia
- Eastern Energy - Thailand
- Thai Mozambique Logistica
- Merrill Lynch Commodities Europe
- Kepco SPC Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- ASAPP Information Group - India
- Pendopo Energi Batubara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Indo Tambangraya Megah - Indonesia
- Timah Investasi Mineral - Indoneisa
- PNOC Exploration Corporation - Philippines
- Power Finance Corporation Ltd., India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- IEA Clean Coal Centre - UK
- Makarim & Taira - Indonesia
- Mintek Dendrill Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Jindal Steel & Power Ltd - India
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- CIMB Investment Bank - Malaysia
- Dalmia Cement Bharat India
- Kalimantan Lumbung Energi - Indonesia
- Manunggal Multi Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Leighton Contractors Pty Ltd - Australia
- PTC India Limited - India
- Carbofer General Trading SA - India
- Siam City Cement - Thailand
- Indika Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Sical Logistics Limited - India
- Indonesian Coal Mining Association
- SMG Consultants - Indonesia
- Central Electricity Authority - India
- Economic Council, Georgia
- Wilmar Investment Holdings
- Maheswari Brothers Coal Limited - India
- Ministry of Mines - Canada
- Kumho Petrochemical, South Korea
- Malabar Cements Ltd - India
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Mercator Lines Limited - India
- Semirara Mining and Power Corporation, Philippines
- Romanian Commodities Exchange
- Petron Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Sinarmas Energy and Mining - Indonesia
- Intertek Mineral Services - Indonesia
- Electricity Authority, New Zealand
- Siam City Cement PLC, Thailand
- Minerals Council of Australia
- Tata Chemicals Ltd - India
- Binh Thuan Hamico - Vietnam
- Rashtriya Ispat Nigam Limited - India
- Chettinad Cement Corporation Ltd - India
- Thiess Contractors Indonesia
- Videocon Industries ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Altura Mining Limited, Indonesia
- Kartika Selabumi Mining - Indonesia
- McConnell Dowell - Australia
- Lanco Infratech Ltd - India
- Orica Australia Pty. Ltd.
- Parliament of New Zealand
- Pipit Mutiara Jaya. PT, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Tamil Nadu electricity Board
- Metalloyd Limited - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Directorate Of Revenue Intelligence - India
- White Energy Company Limited
- Heidelberg Cement - Germany
- GAC Shipping (India) Pvt Ltd
- Rio Tinto Coal - Australia
- Chamber of Mines of South Africa
- Bharathi Cement Corporation - India
- Posco Energy - South Korea
- Star Paper Mills Limited - India
- Sree Jayajothi Cements Limited - India
- Essar Steel Hazira Ltd - India
- Ministry of Transport, Egypt
- Aboitiz Power Corporation - Philippines
- Ind-Barath Power Infra Limited - India
- Australian Commodity Traders Exchange
- Ministry of Finance - Indonesia
- Grasim Industreis Ltd - India
- Bangladesh Power Developement Board
- Sakthi Sugars Limited - India
- Planning Commission, India
- Latin American Coal - Colombia
- Mercuria Energy - Indonesia
- Indian Energy Exchange, India
- Kideco Jaya Agung - Indonesia
- Larsen & Toubro Limited - India
- South Luzon Thermal Energy Corporation
- Georgia Ports Authority, United States
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Gujarat Electricity Regulatory Commission - India
- Energy Development Corp, Philippines
- Coal and Oil Company - UAE
- Ceylon Electricity Board - Sri Lanka
- Port Waratah Coal Services - Australia
- Bhoruka Overseas - Indonesia
- Kobexindo Tractors - Indoneisa
- Bhushan Steel Limited - India
- Marubeni Corporation - India
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