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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, 01 January 14
DRY BULK CARRIER OWNERS ANTICIPATING AN EVEN STRONGER 2014 YEAR - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
To begin with, The Hellenic Shipping News Worldwide team would like to wish you all a Happy and Prosperous 2014! We begin the New Year with our firs ...
Tuesday, 31 December 13
INDONESIA'S COAL PRODUCTION COULD HIT 450 MMT IN 2014 - ICMA
COALspot.com: Indonesia, the fourth largest coal producer and largest coal exporter in the world, to increase coal output in year 2014 instead of th ...
Tuesday, 31 December 13
U.S. COAL PRODUCTION INCREASED WEEK ON WEEK, EIA SAYS
COALspot.com – United States the world’s second largest coal producer, produced approximately 19.5 million short tons (mmst) of coal in ...
Tuesday, 31 December 13
MORE THAN $21 BILLION INVESTED IN SECOND HAND SHIP PURCHASES IN 2013
One thing that was apparent in the sale and purchasing markets during 2013 was the ship owners' larger appetite for vessel acquisitions, as most so ...
Monday, 30 December 13
INDONESIAN COAL TO BE PART OF INDEX DETERMINING POWER TARIFFS - BUSINESS STANDARD
In a significant move, power sector regulator CERC has decided to provide 50 per cent weightage for Indonesian coal in the benchmark index that is u ...
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- Global Business Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- LBH Netherlands Bv - Netherlands
- AsiaOL BioFuels Corp., Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Marubeni Corporation - India
- PowerSource Philippines DevCo
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- Sical Logistics Limited - India
- Eastern Energy - Thailand
- Commonwealth Bank - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Therma Luzon, Inc, Philippines
- GVK Power & Infra Limited - India
- Central Electricity Authority - India
- Attock Cement Pakistan Limited
- Medco Energi Mining Internasional
- Tamil Nadu electricity Board
- Siam City Cement PLC, Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bukit Makmur.PT - Indonesia
- Mjunction Services Limited - India
- Mintek Dendrill Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Formosa Plastics Group - Taiwan
- South Luzon Thermal Energy Corporation
- Ministry of Mines - Canada
- Sree Jayajothi Cements Limited - India
- New Zealand Coal & Carbon
- Aboitiz Power Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Bulk Trading Sa - Switzerland
- Aditya Birla Group - India
- Tata Chemicals Ltd - India
- European Bulk Services B.V. - Netherlands
- Energy Development Corp, Philippines
- Energy Link Ltd, New Zealand
- Timah Investasi Mineral - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Malabar Cements Ltd - India
- Eastern Coal Council - USA
- Metalloyd Limited - United Kingdom
- White Energy Company Limited
- Jindal Steel & Power Ltd - India
- Larsen & Toubro Limited - India
- Toyota Tsusho Corporation, Japan
- CNBM International Corporation - China
- Banpu Public Company Limited - Thailand
- Kaltim Prima Coal - Indonesia
- Semirara Mining Corp, Philippines
- Electricity Authority, New Zealand
- Indika Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Interocean Group of Companies - India
- Kobexindo Tractors - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Binh Thuan Hamico - Vietnam
- Ambuja Cements Ltd - India
- Petron Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Minerals Council of Australia
- Leighton Contractors Pty Ltd - Australia
- The State Trading Corporation of India Ltd
- Electricity Generating Authority of Thailand
- Uttam Galva Steels Limited - India
- TeaM Sual Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Merrill Lynch Commodities Europe
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Finance - Indonesia
- Wilmar Investment Holdings
- Antam Resourcindo - Indonesia
- Deloitte Consulting - India
- Sarangani Energy Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Cement Manufacturers Association - India
- Star Paper Mills Limited - India
- Global Green Power PLC Corporation, Philippines
- Thai Mozambique Logistica
- Savvy Resources Ltd - HongKong
- Manunggal Multi Energi - Indonesia
- Independent Power Producers Association of India
- ASAPP Information Group - India
- Wood Mackenzie - Singapore
- The University of Queensland
- Rio Tinto Coal - Australia
- Dalmia Cement Bharat India
- Orica Australia Pty. Ltd.
- SMG Consultants - Indonesia
- Renaissance Capital - South Africa
- Australian Commodity Traders Exchange
- Bhushan Steel Limited - India
- Bangladesh Power Developement Board
- ICICI Bank Limited - India
- Indogreen Group - Indonesia
- Africa Commodities Group - South Africa
- Kideco Jaya Agung - Indonesia
- Price Waterhouse Coopers - Russia
- Holcim Trading Pte Ltd - Singapore
- Meralco Power Generation, Philippines
- IEA Clean Coal Centre - UK
- Simpson Spence & Young - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Ministry of Transport, Egypt
- Planning Commission, India
- Standard Chartered Bank - UAE
- Karbindo Abesyapradhi - Indoneisa
- Krishnapatnam Port Company Ltd. - India
- Grasim Industreis Ltd - India
- Indonesian Coal Mining Association
- Altura Mining Limited, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Edison Trading Spa - Italy
- Directorate Of Revenue Intelligence - India
- Heidelberg Cement - Germany
- Salva Resources Pvt Ltd - India
- Bhatia International Limited - India
- VISA Power Limited - India
- Economic Council, Georgia
- Coastal Gujarat Power Limited - India
- GMR Energy Limited - India
- Sinarmas Energy and Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- London Commodity Brokers - England
- Baramulti Group, Indonesia
- Posco Energy - South Korea
- Thiess Contractors Indonesia
- Global Coal Blending Company Limited - Australia
- Goldman Sachs - Singapore
- Bhoruka Overseas - Indonesia
- Intertek Mineral Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Mercuria Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- CIMB Investment Bank - Malaysia
- Vizag Seaport Private Limited - India
- Trasteel International SA, Italy
- Chamber of Mines of South Africa
- Bayan Resources Tbk. - Indonesia
- Bukit Baiduri Energy - Indonesia
- Central Java Power - Indonesia
- Oldendorff Carriers - Singapore
- Australian Coal Association
- Sindya Power Generating Company Private Ltd
- Kumho Petrochemical, South Korea
- Coal and Oil Company - UAE
- PNOC Exploration Corporation - Philippines
- Singapore Mercantile Exchange
- Globalindo Alam Lestari - Indonesia
- PTC India Limited - India
- Makarim & Taira - Indonesia
- Lanco Infratech Ltd - India
- Indian Oil Corporation Limited
- Madhucon Powers Ltd - India
- San Jose City I Power Corp, Philippines
- India Bulls Power Limited - India
- Vedanta Resources Plc - India
- Power Finance Corporation Ltd., India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Videocon Industries ltd - India
- Carbofer General Trading SA - India
- Bharathi Cement Corporation - India
- Alfred C Toepfer International GmbH - Germany
- Sojitz Corporation - Japan
- Miang Besar Coal Terminal - Indonesia
- McConnell Dowell - Australia
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- Sakthi Sugars Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- SN Aboitiz Power Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Indian Energy Exchange, India
- Anglo American - United Kingdom
- Maheswari Brothers Coal Limited - India
- Cigading International Bulk Terminal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Georgia Ports Authority, United States
- Coalindo Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Iligan Light & Power Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- Gujarat Electricity Regulatory Commission - India
- Borneo Indobara - Indonesia
- Karaikal Port Pvt Ltd - India
- SMC Global Power, Philippines
- Barasentosa Lestari - Indonesia
- Ind-Barath Power Infra Limited - India
- Siam City Cement - Thailand
- Romanian Commodities Exchange
- Gujarat Mineral Development Corp Ltd - India
- MS Steel International - UAE
- Orica Mining Services - Indonesia
- IHS Mccloskey Coal Group - USA
- Parliament of New Zealand
- Samtan Co., Ltd - South Korea
- OPG Power Generation Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Port Waratah Coal Services - Australia
- Kapuas Tunggal Persada - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Latin American Coal - Colombia
- Jaiprakash Power Ventures ltd
- Directorate General of MIneral and Coal - Indonesia
- Agrawal Coal Company - India
- Xindia Steels Limited - India
- Riau Bara Harum - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercator Lines Limited - India
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