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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 $125bn... Whilst the presence of “new” money is duly noted, we all need to realize that the industry must be able to carry its own weight. If that means changing our processes, transparency levels, corporate responsibility standards, etc. in order to bridge this gap and attract a greater share of their attention, then maybe this is a change we should embrace", Dermatis concluded.
Meanwhile, in the dry bulk market this past week, things continued to improve on the back of rates for the smaller size segments holding on to their levels and those for Capes correcting upwards, said Intermodal, while the spill-overs of the improved sentiment have yet to affect the Panamax market. Nevertheless, the BDI ended yesterday on yet another higher note, ending the session at 1,222 points.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 03 February 14
API 8 CFR SOUTH CHINA COAL SWAP CONTRACTS FALL
COALspot.com: API 8 CFR South China Coal swaps for average Q1 14 delivery lost 4.71 percent month on month and closed at US$ 78.87 per mt as on Frid ...
Monday, 03 February 14
COAL FREIGHT RATES REMAIN UNDER PRESSURE
COALspot.com: The BDI is fell 50 pct over last one month which seems to be one of the lowest fall in last few years.
The BDI was down by 11 ...
Friday, 31 January 14
U.S. COAL PRODUCTION TOTALED APPROXIMATELY 19.2 MMST W-O-W
COALspot.com – United States the world’s second largest coal producer, produced approximately 19.2 million short tons (mmst) of coal in ...
Friday, 31 January 14
DRY BULK MARKET STILL ON A FALL, EXPECTED TO WORSEN - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market is definitely in the doldrums since the start of the year, in what could only be described as a "lost" month for indus ...
Thursday, 30 January 14
JPU SETTLEMENT PRICE AS A BENCHMARK WILL DECLINE IN IMPORTANCE BUT REMAIN RELEVANT, SAYS WOOD MACKENZIE
JPU price will remain above spot, trending closer to spot till 2015 then increasing to 2035.
Japanese Power Utilities (JPU) are approaching a cru ...
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- Kepco SPC Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Commonwealth Bank - Australia
- Toyota Tsusho Corporation, Japan
- Coalindo Energy - Indonesia
- Interocean Group of Companies - India
- Sojitz Corporation - Japan
- Leighton Contractors Pty Ltd - Australia
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- Wood Mackenzie - Singapore
- Power Finance Corporation Ltd., India
- TeaM Sual Corporation - Philippines
- Electricity Authority, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- IHS Mccloskey Coal Group - USA
- Bhushan Steel Limited - India
- Videocon Industries ltd - India
- Indian Oil Corporation Limited
- Kohat Cement Company Ltd. - Pakistan
- Coastal Gujarat Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- MS Steel International - UAE
- Orica Australia Pty. Ltd.
- Iligan Light & Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Kideco Jaya Agung - Indonesia
- CNBM International Corporation - China
- South Luzon Thermal Energy Corporation
- Petrochimia International Co. Ltd.- Taiwan
- India Bulls Power Limited - India
- LBH Netherlands Bv - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- Wilmar Investment Holdings
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Latin American Coal - Colombia
- Renaissance Capital - South Africa
- Antam Resourcindo - Indonesia
- Semirara Mining and Power Corporation, Philippines
- White Energy Company Limited
- Central Electricity Authority - India
- Trasteel International SA, Italy
- Edison Trading Spa - Italy
- VISA Power Limited - India
- Directorate Of Revenue Intelligence - India
- Sinarmas Energy and Mining - Indonesia
- Metalloyd Limited - United Kingdom
- Mjunction Services Limited - India
- Star Paper Mills Limited - India
- Sarangani Energy Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Kapuas Tunggal Persada - Indonesia
- Marubeni Corporation - India
- PowerSource Philippines DevCo
- Standard Chartered Bank - UAE
- Romanian Commodities Exchange
- Dalmia Cement Bharat India
- Singapore Mercantile Exchange
- GAC Shipping (India) Pvt Ltd
- Global Coal Blending Company Limited - Australia
- Planning Commission, India
- Sakthi Sugars Limited - India
- Ind-Barath Power Infra Limited - India
- Altura Mining Limited, Indonesia
- PNOC Exploration Corporation - Philippines
- Intertek Mineral Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Xindia Steels Limited - India
- Samtan Co., Ltd - South Korea
- Global Green Power PLC Corporation, Philippines
- Aditya Birla Group - India
- Meenaskhi Energy Private Limited - India
- Indonesian Coal Mining Association
- Timah Investasi Mineral - Indoneisa
- Indogreen Group - Indonesia
- Formosa Plastics Group - Taiwan
- Posco Energy - South Korea
- Siam City Cement PLC, Thailand
- Binh Thuan Hamico - Vietnam
- PetroVietnam Power Coal Import and Supply Company
- Borneo Indobara - Indonesia
- Mercuria Energy - Indonesia
- Thiess Contractors Indonesia
- Carbofer General Trading SA - India
- Goldman Sachs - Singapore
- Bhatia International Limited - India
- Ambuja Cements Ltd - India
- Agrawal Coal Company - India
- AsiaOL BioFuels Corp., Philippines
- Straits Asia Resources Limited - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Baramulti Group, Indonesia
- SMC Global Power, Philippines
- Indo Tambangraya Megah - Indonesia
- Thai Mozambique Logistica
- Bulk Trading Sa - Switzerland
- Bahari Cakrawala Sebuku - Indonesia
- Merrill Lynch Commodities Europe
- Krishnapatnam Port Company Ltd. - India
- Bhoruka Overseas - Indonesia
- Mercator Lines Limited - India
- Eastern Energy - Thailand
- Ministry of Transport, Egypt
- Gujarat Electricity Regulatory Commission - India
- Heidelberg Cement - Germany
- ICICI Bank Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Savvy Resources Ltd - HongKong
- Pendopo Energi Batubara - Indonesia
- Madhucon Powers Ltd - India
- The State Trading Corporation of India Ltd
- Ministry of Finance - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Energy Development Corp, Philippines
- Energy Link Ltd, New Zealand
- Malabar Cements Ltd - India
- International Coal Ventures Pvt Ltd - India
- The Treasury - Australian Government
- Port Waratah Coal Services - Australia
- Uttam Galva Steels Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement - Thailand
- Economic Council, Georgia
- Orica Mining Services - Indonesia
- Simpson Spence & Young - Indonesia
- Maheswari Brothers Coal Limited - India
- San Jose City I Power Corp, Philippines
- Ceylon Electricity Board - Sri Lanka
- Bukit Baiduri Energy - Indonesia
- Indian Energy Exchange, India
- Larsen & Toubro Limited - India
- Electricity Generating Authority of Thailand
- GN Power Mariveles Coal Plant, Philippines
- London Commodity Brokers - England
- Attock Cement Pakistan Limited
- Cigading International Bulk Terminal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Barasentosa Lestari - Indonesia
- Bangladesh Power Developement Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Medco Energi Mining Internasional
- Sical Logistics Limited - India
- Makarim & Taira - Indonesia
- Australian Commodity Traders Exchange
- Rashtriya Ispat Nigam Limited - India
- Riau Bara Harum - Indonesia
- Coal and Oil Company - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Central Java Power - Indonesia
- Bukit Makmur.PT - Indonesia
- ASAPP Information Group - India
- Bayan Resources Tbk. - Indonesia
- Indika Energy - Indonesia
- Eastern Coal Council - USA
- Chamber of Mines of South Africa
- Karaikal Port Pvt Ltd - India
- Parry Sugars Refinery, India
- Meralco Power Generation, Philippines
- IEA Clean Coal Centre - UK
- Vedanta Resources Plc - India
- GMR Energy Limited - India
- Kumho Petrochemical, South Korea
- Parliament of New Zealand
- Georgia Ports Authority, United States
- Kartika Selabumi Mining - Indonesia
- Tamil Nadu electricity Board
- GVK Power & Infra Limited - India
- Tata Chemicals Ltd - India
- Chettinad Cement Corporation Ltd - India
- Gujarat Sidhee Cement - India
- Australian Coal Association
- McConnell Dowell - Australia
- Rio Tinto Coal - Australia
- Essar Steel Hazira Ltd - India
- Globalindo Alam Lestari - Indonesia
- Bharathi Cement Corporation - India
- Kaltim Prima Coal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Oldendorff Carriers - Singapore
- Alfred C Toepfer International GmbH - Germany
- Vizag Seaport Private Limited - India
- Aboitiz Power Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Cement Manufacturers Association - India
- Therma Luzon, Inc, Philippines
- Africa Commodities Group - South Africa
- Petron Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- New Zealand Coal & Carbon
- The University of Queensland
- PTC India Limited - India
- Price Waterhouse Coopers - Russia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Grasim Industreis Ltd - India
- Sree Jayajothi Cements Limited - India
- Ministry of Mines - Canada
- Deloitte Consulting - India
- Lanco Infratech Ltd - India
- SMG Consultants - Indonesia
- Independent Power Producers Association of India
- Mintek Dendrill Indonesia
- Minerals Council of Australia
- Jaiprakash Power Ventures ltd
- Sindya Power Generating Company Private Ltd
- Semirara Mining Corp, Philippines
- SN Aboitiz Power Inc, Philippines
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