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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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Wednesday, 15 January 14
INDONESIAN MINING LAW AVERTS BOP PRESSURE, RISKS REMAIN, FITCH SAYS
The last-minute intervention at the weekend by Indonesia's politicians to avert a significant disruption of mining activity and exports, should lim ...
Wednesday, 15 January 14
Q3 AND Q4 INDONESIAN COAL SWAPS DECLINE MONTH ON MONTH
COALspot.com – Sub-Bit Indonesia coal swap (FOB) for average Q1’ 14 delivery lost $ 1.23 pmt month on month on Friday 10 January 2014. T ...
Wednesday, 15 January 14
PANAMAX: PACIFIC - REMAINED QUIET; ATLANTIC - CONTINUED THEIR RETREAT
COALspot.com: The holiday hangover seems well underway for the Dry Bulk market that saw more ground being lost this past week. The BDI has closed of ...
Tuesday, 14 January 14
AUSTRALIAN NEWCASTLE PORT'S WEEKLY COAL EXPORTS FALL 18.28 %
COALspot.com: In the week ended January 13, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, totalled 2.67 ...
Monday, 13 January 14
INDONESIAN ORE BAN TO HAVE LIMITED IMPACT ON CHINESE ALUMINIUM PRODUCERS, FITCH RATINGS SAYS
COALspot.com: Fitch Ratings says today that Indonesia's ban on exports of unprocessed mineral ore will have limited impact on Chinese aluminium pro ...
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- Bharathi Cement Corporation - India
- Orica Mining Services - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Commonwealth Bank - Australia
- Barasentosa Lestari - Indonesia
- Madhucon Powers Ltd - India
- Karaikal Port Pvt Ltd - India
- VISA Power Limited - India
- Oldendorff Carriers - Singapore
- Asmin Koalindo Tuhup - Indonesia
- San Jose City I Power Corp, Philippines
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- Borneo Indobara - Indonesia
- European Bulk Services B.V. - Netherlands
- Salva Resources Pvt Ltd - India
- Sojitz Corporation - Japan
- Bukit Makmur.PT - Indonesia
- Planning Commission, India
- GVK Power & Infra Limited - India
- Georgia Ports Authority, United States
- GMR Energy Limited - India
- Antam Resourcindo - Indonesia
- Altura Mining Limited, Indonesia
- Meenaskhi Energy Private Limited - India
- Maheswari Brothers Coal Limited - India
- Ministry of Transport, Egypt
- Indika Energy - Indonesia
- Wood Mackenzie - Singapore
- Baramulti Group, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Marubeni Corporation - India
- Gujarat Sidhee Cement - India
- Malabar Cements Ltd - India
- Energy Link Ltd, New Zealand
- Merrill Lynch Commodities Europe
- Indian Oil Corporation Limited
- Gujarat Mineral Development Corp Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- London Commodity Brokers - England
- Iligan Light & Power Inc, Philippines
- Mintek Dendrill Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Business Power Corporation, Philippines
- Petron Corporation, Philippines
- Economic Council, Georgia
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Jaiprakash Power Ventures ltd
- Indonesian Coal Mining Association
- Sree Jayajothi Cements Limited - India
- Australian Commodity Traders Exchange
- Parliament of New Zealand
- Vedanta Resources Plc - India
- Sakthi Sugars Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Port Waratah Coal Services - Australia
- SMG Consultants - Indonesia
- Goldman Sachs - Singapore
- The State Trading Corporation of India Ltd
- Miang Besar Coal Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Larsen & Toubro Limited - India
- Manunggal Multi Energi - Indonesia
- Banpu Public Company Limited - Thailand
- Bayan Resources Tbk. - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petrochimia International Co. Ltd.- Taiwan
- Parry Sugars Refinery, India
- CIMB Investment Bank - Malaysia
- International Coal Ventures Pvt Ltd - India
- Singapore Mercantile Exchange
- Posco Energy - South Korea
- Binh Thuan Hamico - Vietnam
- PowerSource Philippines DevCo
- Central Java Power - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Kumho Petrochemical, South Korea
- Kalimantan Lumbung Energi - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Essar Steel Hazira Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Bangladesh Power Developement Board
- Anglo American - United Kingdom
- Indian Energy Exchange, India
- Medco Energi Mining Internasional
- Chamber of Mines of South Africa
- South Luzon Thermal Energy Corporation
- Bulk Trading Sa - Switzerland
- Coalindo Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Siam City Cement PLC, Thailand
- Rio Tinto Coal - Australia
- Bhoruka Overseas - Indonesia
- ASAPP Information Group - India
- Therma Luzon, Inc, Philippines
- Australian Coal Association
- Alfred C Toepfer International GmbH - Germany
- Dalmia Cement Bharat India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Siam City Cement - Thailand
- Attock Cement Pakistan Limited
- Tata Chemicals Ltd - India
- Aboitiz Power Corporation - Philippines
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Price Waterhouse Coopers - Russia
- Ambuja Cements Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Sarangani Energy Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Trasteel International SA, Italy
- Mercator Lines Limited - India
- Holcim Trading Pte Ltd - Singapore
- CNBM International Corporation - China
- Billiton Holdings Pty Ltd - Australia
- Mjunction Services Limited - India
- Mercuria Energy - Indonesia
- The Treasury - Australian Government
- Kaltim Prima Coal - Indonesia
- Bhushan Steel Limited - India
- Power Finance Corporation Ltd., India
- Timah Investasi Mineral - Indoneisa
- Aditya Birla Group - India
- OPG Power Generation Pvt Ltd - India
- Eastern Energy - Thailand
- Riau Bara Harum - Indonesia
- Wilmar Investment Holdings
- Grasim Industreis Ltd - India
- Latin American Coal - Colombia
- Straits Asia Resources Limited - Singapore
- Standard Chartered Bank - UAE
- Interocean Group of Companies - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indo Tambangraya Megah - Indonesia
- Coastal Gujarat Power Limited - India
- Kideco Jaya Agung - Indonesia
- Cement Manufacturers Association - India
- Samtan Co., Ltd - South Korea
- Eastern Coal Council - USA
- Bukit Baiduri Energy - Indonesia
- Coal and Oil Company - UAE
- PTC India Limited - India
- Ind-Barath Power Infra Limited - India
- SN Aboitiz Power Inc, Philippines
- Semirara Mining Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- ICICI Bank Limited - India
- Simpson Spence & Young - Indonesia
- Electricity Authority, New Zealand
- Minerals Council of Australia
- Uttam Galva Steels Limited - India
- Thai Mozambique Logistica
- Ministry of Finance - Indonesia
- Kartika Selabumi Mining - Indonesia
- McConnell Dowell - Australia
- Orica Australia Pty. Ltd.
- White Energy Company Limited
- Romanian Commodities Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Global Green Power PLC Corporation, Philippines
- Lanco Infratech Ltd - India
- Chettinad Cement Corporation Ltd - India
- The University of Queensland
- Global Coal Blending Company Limited - Australia
- TeaM Sual Corporation - Philippines
- Deloitte Consulting - India
- Tamil Nadu electricity Board
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- GAC Shipping (India) Pvt Ltd
- Sical Logistics Limited - India
- Renaissance Capital - South Africa
- Agrawal Coal Company - India
- Neyveli Lignite Corporation Ltd, - India
- AsiaOL BioFuels Corp., Philippines
- Toyota Tsusho Corporation, Japan
- Ceylon Electricity Board - Sri Lanka
- Edison Trading Spa - Italy
- Directorate Of Revenue Intelligence - India
- Thiess Contractors Indonesia
- Bhatia International Limited - India
- Central Electricity Authority - India
- Star Paper Mills Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Metalloyd Limited - United Kingdom
- Africa Commodities Group - South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indogreen Group - Indonesia
- MS Steel International - UAE
- Makarim & Taira - Indonesia
- IHS Mccloskey Coal Group - USA
- Heidelberg Cement - Germany
- IEA Clean Coal Centre - UK
- Meralco Power Generation, Philippines
- Xindia Steels Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- India Bulls Power Limited - India
- Cigading International Bulk Terminal - Indonesia
- New Zealand Coal & Carbon
- GN Power Mariveles Coal Plant, Philippines
- Electricity Generating Authority of Thailand
- SMC Global Power, Philippines
- Videocon Industries ltd - India
- Intertek Mineral Services - Indonesia
- LBH Netherlands Bv - Netherlands
- Kobexindo Tractors - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Independent Power Producers Association of India
- Carbofer General Trading SA - India
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