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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 $125bn... Whilst the presence of “new” money is duly noted, we all need to realize that the industry must be able to carry its own weight. If that means changing our processes, transparency levels, corporate responsibility standards, etc. in order to bridge this gap and attract a greater share of their attention, then maybe this is a change we should embrace", Dermatis concluded.
Meanwhile, in the dry bulk market this past week, things continued to improve on the back of rates for the smaller size segments holding on to their levels and those for Capes correcting upwards, said Intermodal, while the spill-overs of the improved sentiment have yet to affect the Panamax market. Nevertheless, the BDI ended yesterday on yet another higher note, ending the session at 1,222 points.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 31 March 14
CFR SOUTH CHINA COAL SWAP FOR Q2 14 DELIVERY LOST 1.17% M-O-M
COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 deliveries lost 1.17 percent month on month and closed at US$ 75.38 per m ...
Sunday, 30 March 14
FREIGHTS FROM INDONESIA TO INDIA IS EXPECTED TO BE SOFT NEXT WEEK - REDDY
COALspot.com: The freight market dropped drastically and all sectors were affected severely.
The BDI was down by 14.13 pct and closed at 1, ...
Friday, 28 March 14
US PRODUCED APPROXIMATELY 18.9 MMST IN A WEEK - EIA
COALspot.com – United States the world's second largest coal producer, produced approximately 18.9 million short tons (mmst) of coal i ...
Friday, 28 March 14
CHINA'S ENVIRONMENTAL MEASURES WILL NOT CURB GROWTH IN DOMESTIC STEEL PRODUCTION AND SEABORNE IRON ORE - WOOD MACKENZIE SAYS
Steel plants in China have been targeted as a major source of the toxic smog enveloping Beijing and Shanghai. Emergency measures have been impos ...
Thursday, 27 March 14
PANAMAX : SEEMS TO HEAD FURTHER DOWN; CAPESIZE : ANOTHER CHOPPY AND UNPREDICTABLE WEEK - FEARNLEYS AS
Handy
A weaker sentiment for the smaller size as well, with reduced activity in the Atlantic where Owners have to face significantly lower ret ...
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- ICICI Bank Limited - India
- Deloitte Consulting - India
- Directorate Of Revenue Intelligence - India
- Ind-Barath Power Infra Limited - India
- Uttam Galva Steels Limited - India
- PNOC Exploration Corporation - Philippines
- Bhushan Steel Limited - India
- LBH Netherlands Bv - Netherlands
- Holcim Trading Pte Ltd - Singapore
- Formosa Plastics Group - Taiwan
- Semirara Mining Corp, Philippines
- Siam City Cement PLC, Thailand
- Kideco Jaya Agung - Indonesia
- Bukit Makmur.PT - Indonesia
- Thai Mozambique Logistica
- Bahari Cakrawala Sebuku - Indonesia
- Singapore Mercantile Exchange
- San Jose City I Power Corp, Philippines
- Eastern Energy - Thailand
- Bangladesh Power Developement Board
- Indian Energy Exchange, India
- Petrochimia International Co. Ltd.- Taiwan
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- ASAPP Information Group - India
- Jindal Steel & Power Ltd - India
- Posco Energy - South Korea
- Gujarat Sidhee Cement - India
- Central Java Power - Indonesia
- Price Waterhouse Coopers - Russia
- Riau Bara Harum - Indonesia
- Bukit Baiduri Energy - Indonesia
- Larsen & Toubro Limited - India
- Romanian Commodities Exchange
- PTC India Limited - India
- Ceylon Electricity Board - Sri Lanka
- Dalmia Cement Bharat India
- Directorate General of MIneral and Coal - Indonesia
- The University of Queensland
- Thiess Contractors Indonesia
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Kaltim Prima Coal - Indonesia
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
- Sojitz Corporation - Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Mines - Canada
- The Treasury - Australian Government
- Latin American Coal - Colombia
- Africa Commodities Group - South Africa
- Aditya Birla Group - India
- Makarim & Taira - Indonesia
- Meralco Power Generation, Philippines
- Star Paper Mills Limited - India
- Carbofer General Trading SA - India
- Ministry of Finance - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Tata Chemicals Ltd - India
- GVK Power & Infra Limited - India
- Indo Tambangraya Megah - Indonesia
- Attock Cement Pakistan Limited
- Rio Tinto Coal - Australia
- Medco Energi Mining Internasional
- Therma Luzon, Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Marubeni Corporation - India
- Xindia Steels Limited - India
- Edison Trading Spa - Italy
- Global Business Power Corporation, Philippines
- Bharathi Cement Corporation - India
- AsiaOL BioFuels Corp., Philippines
- Barasentosa Lestari - Indonesia
- SMG Consultants - Indonesia
- Electricity Generating Authority of Thailand
- Power Finance Corporation Ltd., India
- CIMB Investment Bank - Malaysia
- Straits Asia Resources Limited - Singapore
- Sindya Power Generating Company Private Ltd
- London Commodity Brokers - England
- The State Trading Corporation of India Ltd
- Ministry of Transport, Egypt
- Globalindo Alam Lestari - Indonesia
- Central Electricity Authority - India
- GN Power Mariveles Coal Plant, Philippines
- Videocon Industries ltd - India
- Siam City Cement - Thailand
- Global Green Power PLC Corporation, Philippines
- Malabar Cements Ltd - India
- Mintek Dendrill Indonesia
- Wood Mackenzie - Singapore
- Minerals Council of Australia
- Indogreen Group - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Meenaskhi Energy Private Limited - India
- Anglo American - United Kingdom
- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- Coalindo Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Renaissance Capital - South Africa
- Toyota Tsusho Corporation, Japan
- CNBM International Corporation - China
- Savvy Resources Ltd - HongKong
- McConnell Dowell - Australia
- Australian Coal Association
- Cement Manufacturers Association - India
- Parliament of New Zealand
- SN Aboitiz Power Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Vedanta Resources Plc - India
- Banpu Public Company Limited - Thailand
- Goldman Sachs - Singapore
- Simpson Spence & Young - Indonesia
- India Bulls Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- European Bulk Services B.V. - Netherlands
- Orica Mining Services - Indonesia
- Metalloyd Limited - United Kingdom
- GMR Energy Limited - India
- Iligan Light & Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- VISA Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Indika Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Ambuja Cements Ltd - India
- Intertek Mineral Services - Indonesia
- GAC Shipping (India) Pvt Ltd
- Economic Council, Georgia
- Australian Commodity Traders Exchange
- Binh Thuan Hamico - Vietnam
- Karbindo Abesyapradhi - Indoneisa
- Energy Development Corp, Philippines
- Antam Resourcindo - Indonesia
- Vizag Seaport Private Limited - India
- Bhoruka Overseas - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Sree Jayajothi Cements Limited - India
- Baramulti Group, Indonesia
- Altura Mining Limited, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- MS Steel International - UAE
- Billiton Holdings Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Eastern Coal Council - USA
- New Zealand Coal & Carbon
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- Interocean Group of Companies - India
- Planning Commission, India
- Petron Corporation, Philippines
- PowerSource Philippines DevCo
- Karaikal Port Pvt Ltd - India
- Bhatia International Limited - India
- Energy Link Ltd, New Zealand
- Bulk Trading Sa - Switzerland
- Pipit Mutiara Jaya. PT, Indonesia
- Indian Oil Corporation Limited
- Indonesian Coal Mining Association
- SMC Global Power, Philippines
- Sical Logistics Limited - India
- Timah Investasi Mineral - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- IEA Clean Coal Centre - UK
- Sakthi Sugars Limited - India
- Samtan Co., Ltd - South Korea
- Parry Sugars Refinery, India
- Independent Power Producers Association of India
- Trasteel International SA, Italy
- Gujarat Mineral Development Corp Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- Jaiprakash Power Ventures ltd
- Oldendorff Carriers - Singapore
- Wilmar Investment Holdings
- Heidelberg Cement - Germany
- Kobexindo Tractors - Indoneisa
- Georgia Ports Authority, United States
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Lanco Infratech Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Kumho Petrochemical, South Korea
- Borneo Indobara - Indonesia
- Commonwealth Bank - Australia
- OPG Power Generation Pvt Ltd - India
- Mjunction Services Limited - India
- Sarangani Energy Corporation, Philippines
- Mercator Lines Limited - India
- Aboitiz Power Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Essar Steel Hazira Ltd - India
- Kartika Selabumi Mining - Indonesia
- Kepco SPC Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Standard Chartered Bank - UAE
- White Energy Company Limited
- Asmin Koalindo Tuhup - Indonesia
- International Coal Ventures Pvt Ltd - India
- Chamber of Mines of South Africa
- Bukit Asam (Persero) Tbk - Indonesia
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