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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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Thursday, 06 February 14
PANAMAX: FAR EAST IS ALMOST ABSENT AND ATLANTIC ON SLOW STEAM
Handy
Due to ongoing Chinese New Year the market is still quiet. Slowly we can see some fresh coal cargos entering the market with second half Feb/ ...
Wednesday, 05 February 14
DRY BULK MARKET HAS LOST FURTHER GROUND THIS PAST WEEK - INTERMODAL
COALspot.com: The Dry Bulk market has lost further ground this past week as activity ex-Far East disappeared into the Chinese holidays and owners id ...
Wednesday, 05 February 14
MARKET INSIGHT - TASOS PAPADOPOULOS
KNOWLEDGE TO ELEVATE
COALspot.com: Let's take a break from market prospects, numbers, order book etc. and shed some light on the conclusions of ...
Tuesday, 04 February 14
NEWCASTLE PORT'S WEEKLY COAL EXPORTS HIT NEW HIGH OF 3.53 MMT
COALspot.com: In the week ended 3 February 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, totalled ...
Monday, 03 February 14
SUB-BIT INDONESIA COAL SWAP GAINED WEEK ON WEEK
COALspot.com – Swaps prices gained for thermal coal loading from Indonesia, the world’s largest exporter of the fuel, according SGX.
...
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- Star Paper Mills Limited - India
- Commonwealth Bank - Australia
- Meralco Power Generation, Philippines
- Siam City Cement PLC, Thailand
- Global Green Power PLC Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Marubeni Corporation - India
- Jindal Steel & Power Ltd - India
- SMC Global Power, Philippines
- Oldendorff Carriers - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Georgia Ports Authority, United States
- Bukit Makmur.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- The Treasury - Australian Government
- Economic Council, Georgia
- GAC Shipping (India) Pvt Ltd
- Australian Coal Association
- Standard Chartered Bank - UAE
- PowerSource Philippines DevCo
- TeaM Sual Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- Indian Energy Exchange, India
- White Energy Company Limited
- Africa Commodities Group - South Africa
- Essar Steel Hazira Ltd - India
- Sree Jayajothi Cements Limited - India
- Latin American Coal - Colombia
- San Jose City I Power Corp, Philippines
- Sojitz Corporation - Japan
- GMR Energy Limited - India
- Posco Energy - South Korea
- Wood Mackenzie - Singapore
- Cement Manufacturers Association - India
- Coastal Gujarat Power Limited - India
- Riau Bara Harum - Indonesia
- Petron Corporation, Philippines
- Bulk Trading Sa - Switzerland
- VISA Power Limited - India
- Therma Luzon, Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- CNBM International Corporation - China
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- Attock Cement Pakistan Limited
- Kapuas Tunggal Persada - Indonesia
- Kobexindo Tractors - Indoneisa
- Salva Resources Pvt Ltd - India
- The State Trading Corporation of India Ltd
- SMG Consultants - Indonesia
- Meenaskhi Energy Private Limited - India
- Xindia Steels Limited - India
- Agrawal Coal Company - India
- Karaikal Port Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- The University of Queensland
- Heidelberg Cement - Germany
- London Commodity Brokers - England
- Parry Sugars Refinery, India
- Siam City Cement - Thailand
- Eastern Coal Council - USA
- Baramulti Group, Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sinarmas Energy and Mining - Indonesia
- Simpson Spence & Young - Indonesia
- Indian Oil Corporation Limited
- Aboitiz Power Corporation - Philippines
- Kideco Jaya Agung - Indonesia
- Ind-Barath Power Infra Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Metalloyd Limited - United Kingdom
- Bukit Baiduri Energy - Indonesia
- Antam Resourcindo - Indonesia
- Orica Australia Pty. Ltd.
- Chettinad Cement Corporation Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Barasentosa Lestari - Indonesia
- Mercator Lines Limited - India
- Independent Power Producers Association of India
- Malabar Cements Ltd - India
- Mjunction Services Limited - India
- Singapore Mercantile Exchange
- International Coal Ventures Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Globalindo Alam Lestari - Indonesia
- Thai Mozambique Logistica
- Binh Thuan Hamico - Vietnam
- Edison Trading Spa - Italy
- Bhatia International Limited - India
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- Energy Link Ltd, New Zealand
- Chamber of Mines of South Africa
- Ceylon Electricity Board - Sri Lanka
- Anglo American - United Kingdom
- LBH Netherlands Bv - Netherlands
- Rashtriya Ispat Nigam Limited - India
- CIMB Investment Bank - Malaysia
- Mintek Dendrill Indonesia
- European Bulk Services B.V. - Netherlands
- Petrochimia International Co. Ltd.- Taiwan
- McConnell Dowell - Australia
- Asmin Koalindo Tuhup - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bharathi Cement Corporation - India
- Samtan Co., Ltd - South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jaiprakash Power Ventures ltd
- Romanian Commodities Exchange
- Global Coal Blending Company Limited - Australia
- Toyota Tsusho Corporation, Japan
- Manunggal Multi Energi - Indonesia
- Gujarat Sidhee Cement - India
- Pendopo Energi Batubara - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- MS Steel International - UAE
- Alfred C Toepfer International GmbH - Germany
- IEA Clean Coal Centre - UK
- Kepco SPC Power Corporation, Philippines
- Indogreen Group - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Semirara Mining and Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- Power Finance Corporation Ltd., India
- Goldman Sachs - Singapore
- India Bulls Power Limited - India
- Australian Commodity Traders Exchange
- Ministry of Finance - Indonesia
- Kaltim Prima Coal - Indonesia
- Bangladesh Power Developement Board
- Bhoruka Overseas - Indonesia
- Central Electricity Authority - India
- New Zealand Coal & Carbon
- Uttam Galva Steels Limited - India
- Global Business Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Ministry of Mines - Canada
- Jorong Barutama Greston.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Eastern Energy - Thailand
- Coalindo Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Bhushan Steel Limited - India
- Miang Besar Coal Terminal - Indonesia
- GVK Power & Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Intertek Mineral Services - Indonesia
- Ministry of Transport, Egypt
- Larsen & Toubro Limited - India
- Makarim & Taira - Indonesia
- Thiess Contractors Indonesia
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Ambuja Cements Ltd - India
- Formosa Plastics Group - Taiwan
- Neyveli Lignite Corporation Ltd, - India
- OPG Power Generation Pvt Ltd - India
- Indika Energy - Indonesia
- Kumho Petrochemical, South Korea
- AsiaOL BioFuels Corp., Philippines
- South Luzon Thermal Energy Corporation
- Altura Mining Limited, Indonesia
- Semirara Mining Corp, Philippines
- Tata Chemicals Ltd - India
- ICICI Bank Limited - India
- Timah Investasi Mineral - Indoneisa
- PTC India Limited - India
- Borneo Indobara - Indonesia
- Interocean Group of Companies - India
- Madhucon Powers Ltd - India
- Aditya Birla Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- PNOC Exploration Corporation - Philippines
- Bayan Resources Tbk. - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Deloitte Consulting - India
- Rio Tinto Coal - Australia
- Straits Asia Resources Limited - Singapore
- Indo Tambangraya Megah - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Sakthi Sugars Limited - India
- Parliament of New Zealand
- Iligan Light & Power Inc, Philippines
- Port Waratah Coal Services - Australia
- Carbofer General Trading SA - India
- Trasteel International SA, Italy
- Minerals Council of Australia
- Price Waterhouse Coopers - Russia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indonesian Coal Mining Association
- ASAPP Information Group - India
- Energy Development Corp, Philippines
- Medco Energi Mining Internasional
- Wilmar Investment Holdings
- Vizag Seaport Private Limited - India
- Merrill Lynch Commodities Europe
- Electricity Authority, New Zealand
- Kartika Selabumi Mining - Indonesia
- Orica Mining Services - Indonesia
- Videocon Industries ltd - India
- Lanco Infratech Ltd - India
- IHS Mccloskey Coal Group - USA
- Planning Commission, India
- Tamil Nadu electricity Board
- Billiton Holdings Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Renaissance Capital - South Africa
- Sarangani Energy Corporation, Philippines
- Grasim Industreis Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Dalmia Cement Bharat India
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