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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 $125bn... Whilst the presence of “new” money is duly noted, we all need to realize that the industry must be able to carry its own weight. If that means changing our processes, transparency levels, corporate responsibility standards, etc. in order to bridge this gap and attract a greater share of their attention, then maybe this is a change we should embrace", Dermatis concluded.
Meanwhile, in the dry bulk market this past week, things continued to improve on the back of rates for the smaller size segments holding on to their levels and those for Capes correcting upwards, said Intermodal, while the spill-overs of the improved sentiment have yet to affect the Panamax market. Nevertheless, the BDI ended yesterday on yet another higher note, ending the session at 1,222 points.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 07 April 14
WEEKLY SUB-BIT FOB INDONESIA COAL SWAP CLAIMS EDGE FALL; TREND NEGATIVE
COALspot.com: Indonesian coal swaps for average Q4’ 2014 lost on month, day and on week according to AsiaClear OTC coal swap's reports ...
Monday, 07 April 14
API 8 CFR SOUTH CHINA COAL SWAPS GAINED 2.09% M-O-M
COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 deliveries gained 2.09 percent month on month and closed at US$ 75.68 per ...
Sunday, 06 April 14
THE FREIGHT MARKET KEEPS SLIDING
COALspot.com: The freight market continued to drop this week. The BDI (Baltic Dry Index) is a widely followed metric that reflects the overall r ...
Friday, 04 April 14
UNITED STATES COAL OUTPUT UP 5.4% IN PAST WEEK
COALspot.com – United States the world's second largest coal producer, produced approximately 19.9 million short tons (mmst) of coal i ...
Thursday, 03 April 14
PANAMAX SECTOR IS WATCHING A SEVERE DROP IN RATES - FEARNLEYS
Handy
A further weaker sentiment for the Supras as well in both hemispheres this week with oversupply of tonnage being the major headline. Tra ...
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- London Commodity Brokers - England
- European Bulk Services B.V. - Netherlands
- PNOC Exploration Corporation - Philippines
- Therma Luzon, Inc, Philippines
- Ministry of Mines - Canada
- Alfred C Toepfer International GmbH - Germany
- Bayan Resources Tbk. - Indonesia
- Latin American Coal - Colombia
- Pipit Mutiara Jaya. PT, Indonesia
- Altura Mining Limited, Indonesia
- Vizag Seaport Private Limited - India
- Australian Coal Association
- ASAPP Information Group - India
- Videocon Industries ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kohat Cement Company Ltd. - Pakistan
- Price Waterhouse Coopers - Russia
- Ministry of Transport, Egypt
- Indika Energy - Indonesia
- Attock Cement Pakistan Limited
- Timah Investasi Mineral - Indoneisa
- Indo Tambangraya Megah - Indonesia
- South Luzon Thermal Energy Corporation
- Meralco Power Generation, Philippines
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- Sojitz Corporation - Japan
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- Directorate Of Revenue Intelligence - India
- SMC Global Power, Philippines
- Mercuria Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Thiess Contractors Indonesia
- GAC Shipping (India) Pvt Ltd
- Kaltim Prima Coal - Indonesia
- Ministry of Finance - Indonesia
- International Coal Ventures Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- PowerSource Philippines DevCo
- TeaM Sual Corporation - Philippines
- Bulk Trading Sa - Switzerland
- Goldman Sachs - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kumho Petrochemical, South Korea
- Salva Resources Pvt Ltd - India
- Sakthi Sugars Limited - India
- Kartika Selabumi Mining - Indonesia
- Orica Australia Pty. Ltd.
- Larsen & Toubro Limited - India
- Barasentosa Lestari - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Sree Jayajothi Cements Limited - India
- Sarangani Energy Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- OPG Power Generation Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Star Paper Mills Limited - India
- Indogreen Group - Indonesia
- Jaiprakash Power Ventures ltd
- Kepco SPC Power Corporation, Philippines
- Global Business Power Corporation, Philippines
- Siam City Cement - Thailand
- Maheswari Brothers Coal Limited - India
- Chamber of Mines of South Africa
- Minerals Council of Australia
- Carbofer General Trading SA - India
- SN Aboitiz Power Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Madhucon Powers Ltd - India
- Petron Corporation, Philippines
- Xindia Steels Limited - India
- GMR Energy Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sinarmas Energy and Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Straits Asia Resources Limited - Singapore
- Singapore Mercantile Exchange
- Ind-Barath Power Infra Limited - India
- Agrawal Coal Company - India
- McConnell Dowell - Australia
- IEA Clean Coal Centre - UK
- Sical Logistics Limited - India
- Power Finance Corporation Ltd., India
- Samtan Co., Ltd - South Korea
- Grasim Industreis Ltd - India
- Deloitte Consulting - India
- Merrill Lynch Commodities Europe
- Interocean Group of Companies - India
- Gujarat Mineral Development Corp Ltd - India
- Mercator Lines Limited - India
- Antam Resourcindo - Indonesia
- Oldendorff Carriers - Singapore
- Electricity Authority, New Zealand
- Mjunction Services Limited - India
- AsiaOL BioFuels Corp., Philippines
- VISA Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Economic Council, Georgia
- Indian Energy Exchange, India
- Manunggal Multi Energi - Indonesia
- Lanco Infratech Ltd - India
- PTC India Limited - India
- Energy Link Ltd, New Zealand
- Bhatia International Limited - India
- The State Trading Corporation of India Ltd
- Indian Oil Corporation Limited
- CNBM International Corporation - China
- Metalloyd Limited - United Kingdom
- Global Green Power PLC Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Energy - Thailand
- Semirara Mining and Power Corporation, Philippines
- Thai Mozambique Logistica
- Global Coal Blending Company Limited - Australia
- New Zealand Coal & Carbon
- Kideco Jaya Agung - Indonesia
- Africa Commodities Group - South Africa
- Iligan Light & Power Inc, Philippines
- Posco Energy - South Korea
- Commonwealth Bank - Australia
- Holcim Trading Pte Ltd - Singapore
- SMG Consultants - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Gujarat Electricity Regulatory Commission - India
- Heidelberg Cement - Germany
- Rashtriya Ispat Nigam Limited - India
- Coastal Gujarat Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Eastern Coal Council - USA
- Port Waratah Coal Services - Australia
- IHS Mccloskey Coal Group - USA
- Globalindo Alam Lestari - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Georgia Ports Authority, United States
- Miang Besar Coal Terminal - Indonesia
- Bharathi Cement Corporation - India
- LBH Netherlands Bv - Netherlands
- Medco Energi Mining Internasional
- Dalmia Cement Bharat India
- Essar Steel Hazira Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Binh Thuan Hamico - Vietnam
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Java Power - Indonesia
- Banpu Public Company Limited - Thailand
- GVK Power & Infra Limited - India
- Coal and Oil Company - UAE
- Jorong Barutama Greston.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bhoruka Overseas - Indonesia
- Renaissance Capital - South Africa
- Cigading International Bulk Terminal - Indonesia
- Standard Chartered Bank - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Baramulti Group, Indonesia
- Indonesian Coal Mining Association
- White Energy Company Limited
- Kobexindo Tractors - Indoneisa
- Parliament of New Zealand
- Intertek Mineral Services - Indonesia
- Sindya Power Generating Company Private Ltd
- Wilmar Investment Holdings
- Vijayanagar Sugar Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Independent Power Producers Association of India
- Makarim & Taira - Indonesia
- Electricity Generating Authority of Thailand
- Riau Bara Harum - Indonesia
- Meenaskhi Energy Private Limited - India
- Central Electricity Authority - India
- CIMB Investment Bank - Malaysia
- Aditya Birla Group - India
- Aboitiz Power Corporation - Philippines
- Tata Chemicals Ltd - India
- Toyota Tsusho Corporation, Japan
- Mintek Dendrill Indonesia
- Planning Commission, India
- Energy Development Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- Karaikal Port Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Orica Mining Services - Indonesia
- Tamil Nadu electricity Board
- Savvy Resources Ltd - HongKong
- Trasteel International SA, Italy
- Rio Tinto Coal - Australia
- The University of Queensland
- Chettinad Cement Corporation Ltd - India
- Borneo Indobara - Indonesia
- Uttam Galva Steels Limited - India
- Marubeni Corporation - India
- Gujarat Sidhee Cement - India
- Bhushan Steel Limited - India
- India Bulls Power Limited - India
- Parry Sugars Refinery, India
- Billiton Holdings Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Romanian Commodities Exchange
- Vedanta Resources Plc - India
- Edison Trading Spa - Italy
- Malabar Cements Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- MS Steel International - UAE
- Bangladesh Power Developement Board
- Anglo American - United Kingdom
- Wood Mackenzie - Singapore
- Australian Commodity Traders Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jindal Steel & Power Ltd - India
- ICICI Bank Limited - India
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