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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 $125bn... Whilst the presence of “new” money is duly noted, we all need to realize that the industry must be able to carry its own weight. If that means changing our processes, transparency levels, corporate responsibility standards, etc. in order to bridge this gap and attract a greater share of their attention, then maybe this is a change we should embrace", Dermatis concluded.
Meanwhile, in the dry bulk market this past week, things continued to improve on the back of rates for the smaller size segments holding on to their levels and those for Capes correcting upwards, said Intermodal, while the spill-overs of the improved sentiment have yet to affect the Panamax market. Nevertheless, the BDI ended yesterday on yet another higher note, ending the session at 1,222 points.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 24 March 14
SGX'S Q2'14 CFR SOUTH CHINA COAL SWAP CLOSES SLIGHTLY HIGHER W-O-W
COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 deliveries lost 1.81 percent month on month and closed at US$ 74.82 per mt as o ...
Sunday, 23 March 14
THE COAL FREIGHT RATES SEEN SLIGHTLY FIRMING UP THIS WEEK - REDDY
COALspot.com: The freight market firmed up this week. BDI was up 8.26 pct week on week and index was closed at 1599 points. The Cape index was u ...
Saturday, 22 March 14
SHIP OWNERS INVEST $15 BILLION FOR NEWBUILDINGS AND SECONDHAND VESSELS DURING FEBRUARY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Ship owners have kept on their aggressive stance in the investment scene both for newbuildings, as well as for secondhand vessels globally durin ...
Friday, 21 March 14
DRY BULK MARKET STAYS ON RECOVERY MODE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has reached new year heighs, as a result of renewed Capesize demand. The Baltic Dry Index (BDI) ended yesterday's sessio ...
Friday, 21 March 14
US COAL PRODUCTION UP 1.5%; WEST MISSISSIPPI COAL PRODUCTION DOWN 1.85% WEEK ON WEEK
COALspot.com – United States the world's second largest coal producer, produced approximately 19.0 million short tons (mmst) of coal i ...
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- Essar Steel Hazira Ltd - India
- Chettinad Cement Corporation Ltd - India
- Tata Chemicals Ltd - India
- Economic Council, Georgia
- VISA Power Limited - India
- Interocean Group of Companies - India
- Indonesian Coal Mining Association
- Larsen & Toubro Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Singapore Mercantile Exchange
- Eastern Energy - Thailand
- Straits Asia Resources Limited - Singapore
- Kepco SPC Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Mjunction Services Limited - India
- Semirara Mining Corp, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Barasentosa Lestari - Indonesia
- SMC Global Power, Philippines
- Billiton Holdings Pty Ltd - Australia
- Anglo American - United Kingdom
- Goldman Sachs - Singapore
- Ind-Barath Power Infra Limited - India
- Vedanta Resources Plc - India
- Directorate Of Revenue Intelligence - India
- Bhoruka Overseas - Indonesia
- PTC India Limited - India
- Energy Link Ltd, New Zealand
- European Bulk Services B.V. - Netherlands
- London Commodity Brokers - England
- Thiess Contractors Indonesia
- Medco Energi Mining Internasional
- Ambuja Cements Ltd - India
- Sinarmas Energy and Mining - Indonesia
- San Jose City I Power Corp, Philippines
- Central Electricity Authority - India
- Bukit Baiduri Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Gujarat Mineral Development Corp Ltd - India
- CNBM International Corporation - China
- Holcim Trading Pte Ltd - Singapore
- Independent Power Producers Association of India
- Kartika Selabumi Mining - Indonesia
- Price Waterhouse Coopers - Russia
- South Luzon Thermal Energy Corporation
- Leighton Contractors Pty Ltd - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bharathi Cement Corporation - India
- Meenaskhi Energy Private Limited - India
- Coal and Oil Company - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meralco Power Generation, Philippines
- Bukit Makmur.PT - Indonesia
- Attock Cement Pakistan Limited
- Antam Resourcindo - Indonesia
- ICICI Bank Limited - India
- Maheswari Brothers Coal Limited - India
- Port Waratah Coal Services - Australia
- Salva Resources Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- IHS Mccloskey Coal Group - USA
- Globalindo Alam Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- Sical Logistics Limited - India
- Timah Investasi Mineral - Indoneisa
- Coastal Gujarat Power Limited - India
- Samtan Co., Ltd - South Korea
- Grasim Industreis Ltd - India
- Pendopo Energi Batubara - Indonesia
- Bangladesh Power Developement Board
- Cigading International Bulk Terminal - Indonesia
- Lanco Infratech Ltd - India
- Oldendorff Carriers - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Minerals Council of Australia
- Marubeni Corporation - India
- Mercuria Energy - Indonesia
- Parliament of New Zealand
- Star Paper Mills Limited - India
- Aboitiz Power Corporation - Philippines
- Siam City Cement - Thailand
- Simpson Spence & Young - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Siam City Cement PLC, Thailand
- MS Steel International - UAE
- Iligan Light & Power Inc, Philippines
- Coalindo Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- Electricity Generating Authority of Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indogreen Group - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Therma Luzon, Inc, Philippines
- Latin American Coal - Colombia
- Kaltim Prima Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Sindya Power Generating Company Private Ltd
- Gujarat Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aditya Birla Group - India
- Jaiprakash Power Ventures ltd
- Africa Commodities Group - South Africa
- Asmin Koalindo Tuhup - Indonesia
- Xindia Steels Limited - India
- Sojitz Corporation - Japan
- Jindal Steel & Power Ltd - India
- Dalmia Cement Bharat India
- Videocon Industries ltd - India
- Toyota Tsusho Corporation, Japan
- Riau Bara Harum - Indonesia
- Thai Mozambique Logistica
- CIMB Investment Bank - Malaysia
- Edison Trading Spa - Italy
- Kideco Jaya Agung - Indonesia
- Mintek Dendrill Indonesia
- Manunggal Multi Energi - Indonesia
- GMR Energy Limited - India
- Posco Energy - South Korea
- Bayan Resources Tbk. - Indonesia
- Malabar Cements Ltd - India
- The Treasury - Australian Government
- Standard Chartered Bank - UAE
- Heidelberg Cement - Germany
- Wood Mackenzie - Singapore
- Mercator Lines Limited - India
- Altura Mining Limited, Indonesia
- Rio Tinto Coal - Australia
- Tamil Nadu electricity Board
- Global Coal Blending Company Limited - Australia
- Eastern Coal Council - USA
- Chamber of Mines of South Africa
- Ministry of Transport, Egypt
- SN Aboitiz Power Inc, Philippines
- Banpu Public Company Limited - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Global Business Power Corporation, Philippines
- New Zealand Coal & Carbon
- Deloitte Consulting - India
- Central Java Power - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Georgia Ports Authority, United States
- Bahari Cakrawala Sebuku - Indonesia
- Bulk Trading Sa - Switzerland
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Metalloyd Limited - United Kingdom
- Planning Commission, India
- Indika Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Parry Sugars Refinery, India
- Uttam Galva Steels Limited - India
- Baramulti Group, Indonesia
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- Vizag Seaport Private Limited - India
- The University of Queensland
- Power Finance Corporation Ltd., India
- Indo Tambangraya Megah - Indonesia
- PNOC Exploration Corporation - Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Trasteel International SA, Italy
- Kohat Cement Company Ltd. - Pakistan
- Romanian Commodities Exchange
- Karaikal Port Pvt Ltd - India
- Cement Manufacturers Association - India
- Intertek Mineral Services - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bhushan Steel Limited - India
- Madhucon Powers Ltd - India
- Petron Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Borneo Indobara - Indonesia
- Carbofer General Trading SA - India
- Commonwealth Bank - Australia
- Indian Energy Exchange, India
- Orica Mining Services - Indonesia
- IEA Clean Coal Centre - UK
- Indian Oil Corporation Limited
- Alfred C Toepfer International GmbH - Germany
- Wilmar Investment Holdings
- Bank of Tokyo Mitsubishi UFJ Ltd
- The State Trading Corporation of India Ltd
- McConnell Dowell - Australia
- Australian Coal Association
- Sree Jayajothi Cements Limited - India
- ASAPP Information Group - India
- Sarangani Energy Corporation, Philippines
- Sakthi Sugars Limited - India
- Ministry of Mines - Canada
- Kobexindo Tractors - Indoneisa
- Formosa Plastics Group - Taiwan
- Makarim & Taira - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Australian Commodity Traders Exchange
- PetroVietnam Power Coal Import and Supply Company
- SMG Consultants - Indonesia
- Agrawal Coal Company - India
- Orica Australia Pty. Ltd.
- Electricity Authority, New Zealand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- GVK Power & Infra Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Sidhee Cement - India
- Energy Development Corp, Philippines
- Renaissance Capital - South Africa
- Merrill Lynch Commodities Europe
- Bhatia International Limited - India
- GAC Shipping (India) Pvt Ltd
- International Coal Ventures Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Kumho Petrochemical, South Korea
- TeaM Sual Corporation - Philippines
- White Energy Company Limited
- Vijayanagar Sugar Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- PowerSource Philippines DevCo
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