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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, 12 January 14
THE FREIGHT MARKET CONTINUE TO REMAIN WEAK NEXT WEEK - SOLYM CARRIERS
Wish You A very Happy New Year
COALspot.com: The market has dropped quite a lot as expected due to holidays and probably also the effect of ban o ...
Friday, 10 January 14
DECISION ON ORE EXPORT BAN WILL BE MADE TOMORROW: INDUSTRY MINISTER, JG SAYS
Industry Minister M.S. Hidayat dismissed reports on Thursday that the government had made a decision on the matter. “We will only make a decis ...
Friday, 10 January 14
US COAL PRODUCTION UP 5.8% ON WEEK IN WEEK ENDED SATURDAY 4 JANUARY
COALspot.com – United States the world’s second largest coal producer, produced approximately 18.8 million short tons (mmst) of coal in ...
Thursday, 09 January 14
THE INDONESIAN GOVERNMENT EASES ORE EXPORT BAN
COALspot.com: The Indonesian government has finally agreed to ease the ore-export ban just a few days before the Sunday deadline amid protests from ...
Thursday, 09 January 14
CAPESIZE: WEST AUSTRALIA FREIGHT IS NOW DOWN IN THE $8S AND STILL DROPPING - FEARNLEYS
Handy
In the Atlantic we see rates sliding slowly for the start of 2014. Several players cvrd over the holidays and the rate decline was som ...
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- European Bulk Services B.V. - Netherlands
- Global Coal Blending Company Limited - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Rio Tinto Coal - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chettinad Cement Corporation Ltd - India
- Posco Energy - South Korea
- Madhucon Powers Ltd - India
- Riau Bara Harum - Indonesia
- Power Finance Corporation Ltd., India
- Gujarat Mineral Development Corp Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Mintek Dendrill Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Vedanta Resources Plc - India
- Kumho Petrochemical, South Korea
- Maharashtra Electricity Regulatory Commission - India
- Commonwealth Bank - Australia
- Africa Commodities Group - South Africa
- Globalindo Alam Lestari - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Karaikal Port Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- IEA Clean Coal Centre - UK
- Kobexindo Tractors - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Eastern Energy - Thailand
- Cement Manufacturers Association - India
- Ambuja Cements Ltd - India
- The State Trading Corporation of India Ltd
- Oldendorff Carriers - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Price Waterhouse Coopers - Russia
- Anglo American - United Kingdom
- Petron Corporation, Philippines
- Electricity Authority, New Zealand
- Samtan Co., Ltd - South Korea
- OPG Power Generation Pvt Ltd - India
- MS Steel International - UAE
- PowerSource Philippines DevCo
- Central Java Power - Indonesia
- Bukit Makmur.PT - Indonesia
- Mjunction Services Limited - India
- Sindya Power Generating Company Private Ltd
- Georgia Ports Authority, United States
- Independent Power Producers Association of India
- Aditya Birla Group - India
- Meenaskhi Energy Private Limited - India
- GAC Shipping (India) Pvt Ltd
- Siam City Cement - Thailand
- Medco Energi Mining Internasional
- Sical Logistics Limited - India
- Directorate Of Revenue Intelligence - India
- Indian Energy Exchange, India
- Eastern Coal Council - USA
- Dalmia Cement Bharat India
- Indo Tambangraya Megah - Indonesia
- Electricity Generating Authority of Thailand
- Binh Thuan Hamico - Vietnam
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Green Power PLC Corporation, Philippines
- Carbofer General Trading SA - India
- White Energy Company Limited
- International Coal Ventures Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Indogreen Group - Indonesia
- Bhushan Steel Limited - India
- Standard Chartered Bank - UAE
- Bayan Resources Tbk. - Indonesia
- Kartika Selabumi Mining - Indonesia
- Orica Mining Services - Indonesia
- Sarangani Energy Corporation, Philippines
- New Zealand Coal & Carbon
- Videocon Industries ltd - India
- Coalindo Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- Essar Steel Hazira Ltd - India
- Wood Mackenzie - Singapore
- Savvy Resources Ltd - HongKong
- Indonesian Coal Mining Association
- Kepco SPC Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Romanian Commodities Exchange
- San Jose City I Power Corp, Philippines
- Therma Luzon, Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Bulk Trading Sa - Switzerland
- Ministry of Mines - Canada
- Coal and Oil Company - UAE
- Jindal Steel & Power Ltd - India
- VISA Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Attock Cement Pakistan Limited
- GVK Power & Infra Limited - India
- Kideco Jaya Agung - Indonesia
- McConnell Dowell - Australia
- Global Business Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Goldman Sachs - Singapore
- Larsen & Toubro Limited - India
- Trasteel International SA, Italy
- GN Power Mariveles Coal Plant, Philippines
- Iligan Light & Power Inc, Philippines
- Indika Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Simpson Spence & Young - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Merrill Lynch Commodities Europe
- Orica Australia Pty. Ltd.
- Borneo Indobara - Indonesia
- Indian Oil Corporation Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Central Electricity Authority - India
- Lanco Infratech Ltd - India
- London Commodity Brokers - England
- Latin American Coal - Colombia
- Marubeni Corporation - India
- Jaiprakash Power Ventures ltd
- Ind-Barath Power Infra Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Miang Besar Coal Terminal - Indonesia
- Bangladesh Power Developement Board
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- Semirara Mining and Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Minerals Council of Australia
- Bhoruka Overseas - Indonesia
- Mercuria Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- TeaM Sual Corporation - Philippines
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Port Waratah Coal Services - Australia
- Economic Council, Georgia
- Gujarat Sidhee Cement - India
- Bharathi Cement Corporation - India
- SMG Consultants - Indonesia
- Xindia Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- Kaltim Prima Coal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- The University of Queensland
- GMR Energy Limited - India
- Thai Mozambique Logistica
- Toyota Tsusho Corporation, Japan
- Uttam Galva Steels Limited - India
- Ministry of Transport, Egypt
- Ceylon Electricity Board - Sri Lanka
- Singapore Mercantile Exchange
- Asmin Koalindo Tuhup - Indonesia
- Wilmar Investment Holdings
- Krishnapatnam Port Company Ltd. - India
- SN Aboitiz Power Inc, Philippines
- Renaissance Capital - South Africa
- Kohat Cement Company Ltd. - Pakistan
- Chamber of Mines of South Africa
- Interocean Group of Companies - India
- Maheswari Brothers Coal Limited - India
- Baramulti Group, Indonesia
- Malabar Cements Ltd - India
- Metalloyd Limited - United Kingdom
- Neyveli Lignite Corporation Ltd, - India
- Cigading International Bulk Terminal - Indonesia
- CNBM International Corporation - China
- Meralco Power Generation, Philippines
- Barasentosa Lestari - Indonesia
- Tata Chemicals Ltd - India
- Makarim & Taira - Indonesia
- Kapuas Tunggal Persada - Indonesia
- SMC Global Power, Philippines
- Directorate General of MIneral and Coal - Indonesia
- India Bulls Power Limited - India
- Australian Commodity Traders Exchange
- ASAPP Information Group - India
- Bukit Baiduri Energy - Indonesia
- Coastal Gujarat Power Limited - India
- CIMB Investment Bank - Malaysia
- Sojitz Corporation - Japan
- Planning Commission, India
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement PLC, Thailand
- Mercator Lines Limited - India
- Parliament of New Zealand
- Manunggal Multi Energi - Indonesia
- Deloitte Consulting - India
- PTC India Limited - India
- Grasim Industreis Ltd - India
- Thiess Contractors Indonesia
- Holcim Trading Pte Ltd - Singapore
- Sakthi Sugars Limited - India
- Tamil Nadu electricity Board
- Agrawal Coal Company - India
- Altura Mining Limited, Indonesia
- Straits Asia Resources Limited - Singapore
- Aboitiz Power Corporation - Philippines
- Bhatia International Limited - India
- Timah Investasi Mineral - Indoneisa
- Vizag Seaport Private Limited - India
- The Treasury - Australian Government
- Edison Trading Spa - Italy
- Energy Link Ltd, New Zealand
- Salva Resources Pvt Ltd - India
- Heidelberg Cement - Germany
- Australian Coal Association
- Billiton Holdings Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Antam Resourcindo - Indonesia
- Star Paper Mills Limited - India
- Parry Sugars Refinery, India
- TNB Fuel Sdn Bhd - Malaysia
- Semirara Mining Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Vijayanagar Sugar Pvt Ltd - India
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