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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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- Semirara Mining and Power Corporation, Philippines
- The Treasury - Australian Government
- Neyveli Lignite Corporation Ltd, - India
- Intertek Mineral Services - Indonesia
- Sarangani Energy Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Binh Thuan Hamico - Vietnam
- SMG Consultants - Indonesia
- Attock Cement Pakistan Limited
- Larsen & Toubro Limited - India
- Oldendorff Carriers - Singapore
- Grasim Industreis Ltd - India
- Sojitz Corporation - Japan
- Ministry of Finance - Indonesia
- Tata Chemicals Ltd - India
- Kobexindo Tractors - Indoneisa
- PowerSource Philippines DevCo
- Salva Resources Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Latin American Coal - Colombia
- Merrill Lynch Commodities Europe
- Altura Mining Limited, Indonesia
- Interocean Group of Companies - India
- Directorate Of Revenue Intelligence - India
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- European Bulk Services B.V. - Netherlands
- Bangladesh Power Developement Board
- Miang Besar Coal Terminal - Indonesia
- SMC Global Power, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Link Ltd, New Zealand
- Vizag Seaport Private Limited - India
- GMR Energy Limited - India
- Goldman Sachs - Singapore
- Bukit Makmur.PT - Indonesia
- SN Aboitiz Power Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- GAC Shipping (India) Pvt Ltd
- London Commodity Brokers - England
- IEA Clean Coal Centre - UK
- MS Steel International - UAE
- Singapore Mercantile Exchange
- Jindal Steel & Power Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Independent Power Producers Association of India
- International Coal Ventures Pvt Ltd - India
- Standard Chartered Bank - UAE
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- CNBM International Corporation - China
- Georgia Ports Authority, United States
- McConnell Dowell - Australia
- Chamber of Mines of South Africa
- Ambuja Cements Ltd - India
- Medco Energi Mining Internasional
- Global Green Power PLC Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Coalindo Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Sical Logistics Limited - India
- Essar Steel Hazira Ltd - India
- Bhatia International Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Orica Mining Services - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- TeaM Sual Corporation - Philippines
- Coal and Oil Company - UAE
- Agrawal Coal Company - India
- Eastern Energy - Thailand
- Mercator Lines Limited - India
- India Bulls Power Limited - India
- Rio Tinto Coal - Australia
- Australian Commodity Traders Exchange
- Bhushan Steel Limited - India
- Barasentosa Lestari - Indonesia
- Maheswari Brothers Coal Limited - India
- Gujarat Electricity Regulatory Commission - India
- Sree Jayajothi Cements Limited - India
- Deloitte Consulting - India
- Maharashtra Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- Metalloyd Limited - United Kingdom
- Simpson Spence & Young - Indonesia
- Global Business Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- PTC India Limited - India
- GVK Power & Infra Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Eastern Coal Council - USA
- Ministry of Transport, Egypt
- Romanian Commodities Exchange
- Mjunction Services Limited - India
- Port Waratah Coal Services - Australia
- Edison Trading Spa - Italy
- Offshore Bulk Terminal Pte Ltd, Singapore
- Central Electricity Authority - India
- Meralco Power Generation, Philippines
- Indian Energy Exchange, India
- Bhoruka Overseas - Indonesia
- Indika Energy - Indonesia
- Africa Commodities Group - South Africa
- Parliament of New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Posco Energy - South Korea
- Sakthi Sugars Limited - India
- Coastal Gujarat Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Riau Bara Harum - Indonesia
- Heidelberg Cement - Germany
- Jaiprakash Power Ventures ltd
- Bahari Cakrawala Sebuku - Indonesia
- Toyota Tsusho Corporation, Japan
- PNOC Exploration Corporation - Philippines
- Australian Coal Association
- Price Waterhouse Coopers - Russia
- ICICI Bank Limited - India
- Iligan Light & Power Inc, Philippines
- Madhucon Powers Ltd - India
- Vedanta Resources Plc - India
- Wilmar Investment Holdings
- Ceylon Electricity Board - Sri Lanka
- Pendopo Energi Batubara - Indonesia
- Mintek Dendrill Indonesia
- Banpu Public Company Limited - Thailand
- Antam Resourcindo - Indonesia
- Carbofer General Trading SA - India
- Samtan Co., Ltd - South Korea
- AsiaOL BioFuels Corp., Philippines
- Uttam Galva Steels Limited - India
- Sindya Power Generating Company Private Ltd
- Siam City Cement PLC, Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Malabar Cements Ltd - India
- Manunggal Multi Energi - Indonesia
- Indo Tambangraya Megah - Indonesia
- Ministry of Mines - Canada
- Borneo Indobara - Indonesia
- Aditya Birla Group - India
- South Luzon Thermal Energy Corporation
- Xindia Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- Alfred C Toepfer International GmbH - Germany
- Bharathi Cement Corporation - India
- Marubeni Corporation - India
- Cement Manufacturers Association - India
- Siam City Cement - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Dalmia Cement Bharat India
- Makarim & Taira - Indonesia
- Renaissance Capital - South Africa
- Orica Australia Pty. Ltd.
- Rashtriya Ispat Nigam Limited - India
- Karaikal Port Pvt Ltd - India
- The State Trading Corporation of India Ltd
- VISA Power Limited - India
- Thai Mozambique Logistica
- New Zealand Coal & Carbon
- Cigading International Bulk Terminal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Billiton Holdings Pty Ltd - Australia
- OPG Power Generation Pvt Ltd - India
- Trasteel International SA, Italy
- Commonwealth Bank - Australia
- Indonesian Coal Mining Association
- Indogreen Group - Indonesia
- Formosa Plastics Group - Taiwan
- Mercuria Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- ASAPP Information Group - India
- Aboitiz Power Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Electricity Generating Authority of Thailand
- White Energy Company Limited
- Meenaskhi Energy Private Limited - India
- Thiess Contractors Indonesia
- Power Finance Corporation Ltd., India
- IHS Mccloskey Coal Group - USA
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Anglo American - United Kingdom
- Videocon Industries ltd - India
- Wood Mackenzie - Singapore
- Gujarat Sidhee Cement - India
- The University of Queensland
- Planning Commission, India
- Energy Development Corp, Philippines
- Indian Oil Corporation Limited
- Kepco SPC Power Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Star Paper Mills Limited - India
- Kaltim Prima Coal - Indonesia
- Economic Council, Georgia
- Bayan Resources Tbk. - Indonesia
- Straits Asia Resources Limited - Singapore
- Timah Investasi Mineral - Indoneisa
- Baramulti Group, Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Tamil Nadu electricity Board
- Petron Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Ind-Barath Power Infra Limited - India
- Lanco Infratech Ltd - India
- Electricity Authority, New Zealand
- San Jose City I Power Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Bulk Trading Sa - Switzerland
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- CIMB Investment Bank - Malaysia
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