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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, 16 February 14
SUPRAMAX : THE FAR EAST/SE ASIA CHARTER RATES FIRMED UP
COALspot.com: The freight market had a mixed reaction this week with BDI increased by 1.37 pct and closing at 1106 points on Valentine day. The cape ...
Friday, 14 February 14
US COAL PRODUCTION STILL SLIPPING
COALspot.com – United States the world’s second largest coal producer, produced approximately 17.9 million short tons (mmst) of coal in ...
Thursday, 13 February 14
PANAMAX : NOT ENOUGH REQUIREMENTS TO KEEP THE ATLANTIC MARKET FLOATING - FEARNLEYS AS
Handy
After the Chinese holidays the week started on a positive note. Owners are talking higher rates but chrtrs are still somehow reluctant to mov ...
Thursday, 13 February 14
DRY BULK MARKET FACES BETTER PROSPECTS ON THE BACK OF IMPROVING DEMAND AND SUPPLY BALANCE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has started off the New Year on the "left foot", with the strong finish of 2013 proving to be unsustainable, on the ba ...
Wednesday, 12 February 14
NEW BUILDING ORDERS REACHING NEW POST-CRISIS HEIGHTS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Ship owners are looking to take advantage of the last few attractive deals in the new building market, before prices start climbing to new highs and ...
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- Energy Link Ltd, New Zealand
- London Commodity Brokers - England
- Leighton Contractors Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- LBH Netherlands Bv - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Planning Commission, India
- Uttam Galva Steels Limited - India
- PowerSource Philippines DevCo
- Barasentosa Lestari - Indonesia
- The State Trading Corporation of India Ltd
- International Coal Ventures Pvt Ltd - India
- Minerals Council of Australia
- Indogreen Group - Indonesia
- Sarangani Energy Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Thai Mozambique Logistica
- Sinarmas Energy and Mining - Indonesia
- Jindal Steel & Power Ltd - India
- Bangladesh Power Developement Board
- Tata Chemicals Ltd - India
- Global Business Power Corporation, Philippines
- VISA Power Limited - India
- Orica Mining Services - Indonesia
- Sojitz Corporation - Japan
- ASAPP Information Group - India
- Manunggal Multi Energi - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Merrill Lynch Commodities Europe
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Straits Asia Resources Limited - Singapore
- Marubeni Corporation - India
- Vizag Seaport Private Limited - India
- Altura Mining Limited, Indonesia
- Binh Thuan Hamico - Vietnam
- Directorate General of MIneral and Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Meralco Power Generation, Philippines
- Georgia Ports Authority, United States
- Sical Logistics Limited - India
- Miang Besar Coal Terminal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Petron Corporation, Philippines
- Deloitte Consulting - India
- Billiton Holdings Pty Ltd - Australia
- OPG Power Generation Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Dalmia Cement Bharat India
- Indika Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Central Electricity Authority - India
- Gujarat Mineral Development Corp Ltd - India
- Coal and Oil Company - UAE
- Kohat Cement Company Ltd. - Pakistan
- Kobexindo Tractors - Indoneisa
- Banpu Public Company Limited - Thailand
- Australian Coal Association
- Global Coal Blending Company Limited - Australia
- SMC Global Power, Philippines
- Ambuja Cements Ltd - India
- Jaiprakash Power Ventures ltd
- GAC Shipping (India) Pvt Ltd
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Petrochimia International Co. Ltd.- Taiwan
- Coalindo Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Orica Australia Pty. Ltd.
- Renaissance Capital - South Africa
- Wood Mackenzie - Singapore
- Economic Council, Georgia
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- IEA Clean Coal Centre - UK
- Cement Manufacturers Association - India
- Parliament of New Zealand
- South Luzon Thermal Energy Corporation
- Romanian Commodities Exchange
- Mintek Dendrill Indonesia
- New Zealand Coal & Carbon
- Pipit Mutiara Jaya. PT, Indonesia
- AsiaOL BioFuels Corp., Philippines
- European Bulk Services B.V. - Netherlands
- Bulk Trading Sa - Switzerland
- Siam City Cement - Thailand
- Power Finance Corporation Ltd., India
- Riau Bara Harum - Indonesia
- Intertek Mineral Services - Indonesia
- Price Waterhouse Coopers - Russia
- Bharathi Cement Corporation - India
- Indonesian Coal Mining Association
- Timah Investasi Mineral - Indoneisa
- Wilmar Investment Holdings
- Parry Sugars Refinery, India
- Grasim Industreis Ltd - India
- Borneo Indobara - Indonesia
- Videocon Industries ltd - India
- Madhucon Powers Ltd - India
- Agrawal Coal Company - India
- Kaltim Prima Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Development Corp, Philippines
- Indian Oil Corporation Limited
- Sakthi Sugars Limited - India
- GMR Energy Limited - India
- Lanco Infratech Ltd - India
- Ind-Barath Power Infra Limited - India
- Kumho Petrochemical, South Korea
- Iligan Light & Power Inc, Philippines
- Aditya Birla Group - India
- Commonwealth Bank - Australia
- Toyota Tsusho Corporation, Japan
- Bayan Resources Tbk. - Indonesia
- TeaM Sual Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Trasteel International SA, Italy
- Heidelberg Cement - Germany
- Offshore Bulk Terminal Pte Ltd, Singapore
- Samtan Co., Ltd - South Korea
- Anglo American - United Kingdom
- Indo Tambangraya Megah - Indonesia
- Mjunction Services Limited - India
- Edison Trading Spa - Italy
- Sree Jayajothi Cements Limited - India
- Krishnapatnam Port Company Ltd. - India
- Eastern Coal Council - USA
- SMG Consultants - Indonesia
- Interocean Group of Companies - India
- Simpson Spence & Young - Indonesia
- MS Steel International - UAE
- Xindia Steels Limited - India
- White Energy Company Limited
- The Treasury - Australian Government
- Maharashtra Electricity Regulatory Commission - India
- Essar Steel Hazira Ltd - India
- Indian Energy Exchange, India
- Semirara Mining Corp, Philippines
- ICICI Bank Limited - India
- Goldman Sachs - Singapore
- Formosa Plastics Group - Taiwan
- Ministry of Transport, Egypt
- Neyveli Lignite Corporation Ltd, - India
- Larsen & Toubro Limited - India
- Bukit Baiduri Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Vedanta Resources Plc - India
- Bahari Cakrawala Sebuku - Indonesia
- Thiess Contractors Indonesia
- CNBM International Corporation - China
- Star Paper Mills Limited - India
- Attock Cement Pakistan Limited
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Sidhee Cement - India
- Port Waratah Coal Services - Australia
- Antam Resourcindo - Indonesia
- McConnell Dowell - Australia
- Bhushan Steel Limited - India
- Metalloyd Limited - United Kingdom
- Meenaskhi Energy Private Limited - India
- PNOC Exploration Corporation - Philippines
- GVK Power & Infra Limited - India
- Australian Commodity Traders Exchange
- Latin American Coal - Colombia
- Karbindo Abesyapradhi - Indoneisa
- PTC India Limited - India
- Ministry of Mines - Canada
- Tamil Nadu electricity Board
- GN Power Mariveles Coal Plant, Philippines
- Coastal Gujarat Power Limited - India
- Salva Resources Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Carbofer General Trading SA - India
- Standard Chartered Bank - UAE
- Baramulti Group, Indonesia
- Ministry of Finance - Indonesia
- IHS Mccloskey Coal Group - USA
- Singapore Mercantile Exchange
- Independent Power Producers Association of India
- Mercuria Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Kapuas Tunggal Persada - Indonesia
- Malabar Cements Ltd - India
- Bhatia International Limited - India
- Karaikal Port Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Eastern Energy - Thailand
- SN Aboitiz Power Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Global Green Power PLC Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Directorate Of Revenue Intelligence - India
- Rashtriya Ispat Nigam Limited - India
- Chamber of Mines of South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Electricity Generating Authority of Thailand
- Central Java Power - Indonesia
- The University of Queensland
- Savvy Resources Ltd - HongKong
- Globalindo Alam Lestari - Indonesia
- Posco Energy - South Korea
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining and Power Corporation, Philippines
- India Bulls Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Makarim & Taira - Indonesia
- Bukit Makmur.PT - Indonesia
- Siam City Cement PLC, Thailand
- Kideco Jaya Agung - Indonesia
- Medco Energi Mining Internasional
- Rio Tinto Coal - Australia
- Africa Commodities Group - South Africa
- Maheswari Brothers Coal Limited - India
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