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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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Sunday, 02 March 14
THE FREIGHT MARKET WAS STEADY TO FIRM THIS PAST WEEK - CAPT. REDDY
COALspot.com: The freight market was steady to firm this past week. The BDI was up 7.06 pct and closed at 1258 points and the cape index was also fi ...
Friday, 28 February 14
PTBA TO INCREASE ITS COAL TERMINAL'S LOADING CAPACITY TO 25 MILLION TONS PER ANNUM BY JULY 2014
COALspot.com: PT. Bukit Asam (PTBA), the Indonesian government owned coal miner operates several coal mining units in Sumatera as well as in Kaliman ...
Friday, 28 February 14
U.S PRODUCED 1.9% LESS COAL WEEK ON WEEK
COALspot.com – United States the world’s second largest coal producer, produced approximately 18.8 million short tons (mmst) of coal in ...
Friday, 28 February 14
DRY BULK MARKET SLOWLY BUT STEADILY FINDS ITS FOOTING - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market, hit by the low seasonal demand which is a typical characteristic of the first quarter of each year, is beginning to emerge from ...
Thursday, 27 February 14
PANAMAX : MARKET CONTINUED TO DECLINE IN THE ATLANTIC
Handy
The Atlantic handy/supra market experienced a downward trend this week but not a dramatic one. TA rates are down around USD 800 w-o-w lead b ...
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Showing 3826 to 3830 news of total 6871 |
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- TNB Fuel Sdn Bhd - Malaysia
- Electricity Authority, New Zealand
- Mintek Dendrill Indonesia
- Kepco SPC Power Corporation, Philippines
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- Coal and Oil Company - UAE
- European Bulk Services B.V. - Netherlands
- Power Finance Corporation Ltd., India
- Anglo American - United Kingdom
- Pendopo Energi Batubara - Indonesia
- Ministry of Finance - Indonesia
- SMG Consultants - Indonesia
- CNBM International Corporation - China
- MS Steel International - UAE
- Mjunction Services Limited - India
- Therma Luzon, Inc, Philippines
- Independent Power Producers Association of India
- Billiton Holdings Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Indo Tambangraya Megah - Indonesia
- Straits Asia Resources Limited - Singapore
- Essar Steel Hazira Ltd - India
- Sarangani Energy Corporation, Philippines
- New Zealand Coal & Carbon
- Chettinad Cement Corporation Ltd - India
- Mercator Lines Limited - India
- Posco Energy - South Korea
- Sindya Power Generating Company Private Ltd
- Heidelberg Cement - Germany
- PNOC Exploration Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Cement Manufacturers Association - India
- Attock Cement Pakistan Limited
- Interocean Group of Companies - India
- San Jose City I Power Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- Latin American Coal - Colombia
- Malabar Cements Ltd - India
- Vizag Seaport Private Limited - India
- Romanian Commodities Exchange
- Electricity Generating Authority of Thailand
- Edison Trading Spa - Italy
- Singapore Mercantile Exchange
- McConnell Dowell - Australia
- Samtan Co., Ltd - South Korea
- Georgia Ports Authority, United States
- OPG Power Generation Pvt Ltd - India
- The State Trading Corporation of India Ltd
- India Bulls Power Limited - India
- TeaM Sual Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Standard Chartered Bank - UAE
- South Luzon Thermal Energy Corporation
- London Commodity Brokers - England
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cigading International Bulk Terminal - Indonesia
- White Energy Company Limited
- Trasteel International SA, Italy
- Ind-Barath Power Infra Limited - India
- Central Java Power - Indonesia
- Manunggal Multi Energi - Indonesia
- Kumho Petrochemical, South Korea
- Formosa Plastics Group - Taiwan
- Global Green Power PLC Corporation, Philippines
- Economic Council, Georgia
- Planning Commission, India
- Meenaskhi Energy Private Limited - India
- Indika Energy - Indonesia
- Thai Mozambique Logistica
- Maheswari Brothers Coal Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Renaissance Capital - South Africa
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Electricity Regulatory Commission - India
- SMC Global Power, Philippines
- Tata Chemicals Ltd - India
- Eastern Energy - Thailand
- Iligan Light & Power Inc, Philippines
- Central Electricity Authority - India
- ICICI Bank Limited - India
- Indonesian Coal Mining Association
- Energy Link Ltd, New Zealand
- Globalindo Alam Lestari - Indonesia
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indian Energy Exchange, India
- Global Coal Blending Company Limited - Australia
- Kideco Jaya Agung - Indonesia
- IEA Clean Coal Centre - UK
- ASAPP Information Group - India
- Intertek Mineral Services - Indonesia
- Indogreen Group - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Riau Bara Harum - Indonesia
- Orica Mining Services - Indonesia
- Sakthi Sugars Limited - India
- Merrill Lynch Commodities Europe
- Barasentosa Lestari - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ceylon Electricity Board - Sri Lanka
- Asmin Koalindo Tuhup - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thiess Contractors Indonesia
- Antam Resourcindo - Indonesia
- Eastern Coal Council - USA
- Kaltim Prima Coal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Timah Investasi Mineral - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- Salva Resources Pvt Ltd - India
- Bangladesh Power Developement Board
- Commonwealth Bank - Australia
- Dalmia Cement Bharat India
- Kartika Selabumi Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Parliament of New Zealand
- AsiaOL BioFuels Corp., Philippines
- Gujarat Mineral Development Corp Ltd - India
- Australian Coal Association
- Madhucon Powers Ltd - India
- Grasim Industreis Ltd - India
- Larsen & Toubro Limited - India
- Indian Oil Corporation Limited
- Marubeni Corporation - India
- Uttam Galva Steels Limited - India
- Orica Australia Pty. Ltd.
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Meralco Power Generation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- Bhatia International Limited - India
- Star Paper Mills Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Africa Commodities Group - South Africa
- Kapuas Tunggal Persada - Indonesia
- Wilmar Investment Holdings
- Minerals Council of Australia
- Binh Thuan Hamico - Vietnam
- Makarim & Taira - Indonesia
- Medco Energi Mining Internasional
- Australian Commodity Traders Exchange
- Price Waterhouse Coopers - Russia
- Siam City Cement PLC, Thailand
- Karaikal Port Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Transport, Egypt
- Miang Besar Coal Terminal - Indonesia
- Videocon Industries ltd - India
- IHS Mccloskey Coal Group - USA
- Bhushan Steel Limited - India
- PowerSource Philippines DevCo
- Maharashtra Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Wood Mackenzie - Singapore
- Toyota Tsusho Corporation, Japan
- International Coal Ventures Pvt Ltd - India
- PTC India Limited - India
- Ministry of Mines - Canada
- GN Power Mariveles Coal Plant, Philippines
- Mercuria Energy - Indonesia
- GMR Energy Limited - India
- Directorate Of Revenue Intelligence - India
- Carbofer General Trading SA - India
- PetroVietnam Power Coal Import and Supply Company
- Altura Mining Limited, Indonesia
- Parry Sugars Refinery, India
- Coalindo Energy - Indonesia
- Simpson Spence & Young - Indonesia
- LBH Netherlands Bv - Netherlands
- Port Waratah Coal Services - Australia
- Coastal Gujarat Power Limited - India
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- SN Aboitiz Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Energy Development Corp, Philippines
- Jindal Steel & Power Ltd - India
- Alfred C Toepfer International GmbH - Germany
- GAC Shipping (India) Pvt Ltd
- Aboitiz Power Corporation - Philippines
- The University of Queensland
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- VISA Power Limited - India
- Bayan Resources Tbk. - Indonesia
- Oldendorff Carriers - Singapore
- Chamber of Mines of South Africa
- Neyveli Lignite Corporation Ltd, - India
- Xindia Steels Limited - India
- Semirara Mining Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhoruka Overseas - Indonesia
- Aditya Birla Group - India
- Baramulti Group, Indonesia
- Sojitz Corporation - Japan
- Deloitte Consulting - India
- CIMB Investment Bank - Malaysia
- GVK Power & Infra Limited - India
- Savvy Resources Ltd - HongKong
- Borneo Indobara - Indonesia
- Lanco Infratech Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kobexindo Tractors - Indoneisa
- Semirara Mining and Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Rio Tinto Coal - Australia
- Petron Corporation, Philippines
- Global Business Power Corporation, Philippines
- Gujarat Sidhee Cement - India
- Sical Logistics Limited - India
- Bharathi Cement Corporation - India
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