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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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Friday, 27 December 13
THE EXPORT OF UNPROCESSED MINERALS WOULD NOT BE ALLOWED AFTER 12 JAN 2014 - INDONESIAN ENERGY MINISTER
COALspot.com: The government of Indonesia will implement Law No. 4 of 2009 on Mineral and Coal in full and consistently by January 12, 2014, said, m ...
Friday, 27 December 13
INDONESIA SHIPPED 15.75 PERCENT MORE COAL IN NOVEMBER
COALspot.com: Indonesia, the world's 4th largest coal producer and the largest multi grade coal exporter shipped over $2* billion worth of co ...
Thursday, 26 December 13
COAL & OIL GROUP SECURES US$ 250 MILLION FUNDING FOR ITS 1200MW THERMAL POWER PLANT IN INDIA
COALspot.com: Dubai-based Coal & Oil (C&O) Group has announced that it has secured additional funding of approximately Dhs. 1 billion (appro ...
Wednesday, 25 December 13
DRY BULK INDEX LOST SOME GROUND THIS PAST WEEK - INTERMODAL
Chartering (Wet: Firm+ / Dry: Softer - )
The Dry Bulk Index lost some ground this past week, on the back of activity slowing down befor ...
Wednesday, 25 December 13
SHIPPING : AS FAR AS THIS CYCLE IS CONCERNED, 'WE HAVE SEEN THE WORST....!' - JOHN N. COTZIAS
In a week’s time the year comes to an end. Having been a speaker in two seminars over the past 5 days I was able to see the year ending trends ...
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- MS Steel International - UAE
- India Bulls Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Marubeni Corporation - India
- Sojitz Corporation - Japan
- Alfred C Toepfer International GmbH - Germany
- Energy Development Corp, Philippines
- Ministry of Finance - Indonesia
- Uttam Galva Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sindya Power Generating Company Private Ltd
- OPG Power Generation Pvt Ltd - India
- Renaissance Capital - South Africa
- Australian Coal Association
- Minerals Council of Australia
- Independent Power Producers Association of India
- Rio Tinto Coal - Australia
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Directorate General of MIneral and Coal - Indonesia
- Anglo American - United Kingdom
- GAC Shipping (India) Pvt Ltd
- GVK Power & Infra Limited - India
- Sree Jayajothi Cements Limited - India
- Tamil Nadu electricity Board
- PTC India Limited - India
- Commonwealth Bank - Australia
- Kohat Cement Company Ltd. - Pakistan
- Planning Commission, India
- Wilmar Investment Holdings
- Indian Oil Corporation Limited
- Tata Chemicals Ltd - India
- Africa Commodities Group - South Africa
- Maheswari Brothers Coal Limited - India
- Vedanta Resources Plc - India
- White Energy Company Limited
- London Commodity Brokers - England
- Electricity Authority, New Zealand
- TeaM Sual Corporation - Philippines
- The Treasury - Australian Government
- Barasentosa Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- Electricity Generating Authority of Thailand
- Heidelberg Cement - Germany
- PNOC Exploration Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Thai Mozambique Logistica
- Orica Mining Services - Indonesia
- Straits Asia Resources Limited - Singapore
- Latin American Coal - Colombia
- Ceylon Electricity Board - Sri Lanka
- Manunggal Multi Energi - Indonesia
- Gujarat Sidhee Cement - India
- Petron Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Trasteel International SA, Italy
- Baramulti Group, Indonesia
- Indian Energy Exchange, India
- Bhoruka Overseas - Indonesia
- The State Trading Corporation of India Ltd
- Georgia Ports Authority, United States
- Merrill Lynch Commodities Europe
- Orica Australia Pty. Ltd.
- Maharashtra Electricity Regulatory Commission - India
- European Bulk Services B.V. - Netherlands
- Global Business Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Oldendorff Carriers - Singapore
- SN Aboitiz Power Inc, Philippines
- Bhatia International Limited - India
- Pendopo Energi Batubara - Indonesia
- Interocean Group of Companies - India
- PowerSource Philippines DevCo
- Malabar Cements Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Makarim & Taira - Indonesia
- CNBM International Corporation - China
- Formosa Plastics Group - Taiwan
- Miang Besar Coal Terminal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Madhucon Powers Ltd - India
- Binh Thuan Hamico - Vietnam
- Siam City Cement PLC, Thailand
- Xindia Steels Limited - India
- Bhushan Steel Limited - India
- Standard Chartered Bank - UAE
- Mercator Lines Limited - India
- Australian Commodity Traders Exchange
- Global Coal Blending Company Limited - Australia
- Posco Energy - South Korea
- Medco Energi Mining Internasional
- Mjunction Services Limited - India
- LBH Netherlands Bv - Netherlands
- Asmin Koalindo Tuhup - Indonesia
- Borneo Indobara - Indonesia
- Deloitte Consulting - India
- Parry Sugars Refinery, India
- Jindal Steel & Power Ltd - India
- Ind-Barath Power Infra Limited - India
- Port Waratah Coal Services - Australia
- Cigading International Bulk Terminal - Indonesia
- Eastern Coal Council - USA
- Metalloyd Limited - United Kingdom
- Semirara Mining Corp, Philippines
- South Luzon Thermal Energy Corporation
- Lanco Infratech Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Chettinad Cement Corporation Ltd - India
- Vizag Seaport Private Limited - India
- Bulk Trading Sa - Switzerland
- Meenaskhi Energy Private Limited - India
- Economic Council, Georgia
- GMR Energy Limited - India
- Power Finance Corporation Ltd., India
- Indonesian Coal Mining Association
- Simpson Spence & Young - Indonesia
- Ministry of Transport, Egypt
- Bank of Tokyo Mitsubishi UFJ Ltd
- GN Power Mariveles Coal Plant, Philippines
- Attock Cement Pakistan Limited
- Kapuas Tunggal Persada - Indonesia
- Dalmia Cement Bharat India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Petrochimia International Co. Ltd.- Taiwan
- Globalindo Alam Lestari - Indonesia
- IEA Clean Coal Centre - UK
- Sical Logistics Limited - India
- Essar Steel Hazira Ltd - India
- Sakthi Sugars Limited - India
- Ambuja Cements Ltd - India
- Wood Mackenzie - Singapore
- Billiton Holdings Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Gujarat Electricity Regulatory Commission - India
- Eastern Energy - Thailand
- McConnell Dowell - Australia
- Altura Mining Limited, Indonesia
- Holcim Trading Pte Ltd - Singapore
- Coastal Gujarat Power Limited - India
- Aboitiz Power Corporation - Philippines
- Videocon Industries ltd - India
- Singapore Mercantile Exchange
- Coalindo Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Indogreen Group - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Banpu Public Company Limited - Thailand
- Cement Manufacturers Association - India
- ASAPP Information Group - India
- SMC Global Power, Philippines
- Edison Trading Spa - Italy
- VISA Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Bukit Makmur.PT - Indonesia
- Kartika Selabumi Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Price Waterhouse Coopers - Russia
- Indika Energy - Indonesia
- Central Electricity Authority - India
- Mercuria Energy - Indonesia
- Mintek Dendrill Indonesia
- New Zealand Coal & Carbon
- IHS Mccloskey Coal Group - USA
- Grasim Industreis Ltd - India
- Chamber of Mines of South Africa
- San Jose City I Power Corp, Philippines
- Larsen & Toubro Limited - India
- Karaikal Port Pvt Ltd - India
- Siam City Cement - Thailand
- Indo Tambangraya Megah - Indonesia
- Iligan Light & Power Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Agrawal Coal Company - India
- Bharathi Cement Corporation - India
- Ministry of Mines - Canada
- Savvy Resources Ltd - HongKong
- Bukit Baiduri Energy - Indonesia
- Antam Resourcindo - Indonesia
- Coal and Oil Company - UAE
- Kepco SPC Power Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- The University of Queensland
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- Goldman Sachs - Singapore
- Bayan Resources Tbk. - Indonesia
- Star Paper Mills Limited - India
- Directorate Of Revenue Intelligence - India
- ICICI Bank Limited - India
- Leighton Contractors Pty Ltd - Australia
- Thiess Contractors Indonesia
- Jaiprakash Power Ventures ltd
- Bangladesh Power Developement Board
- Meralco Power Generation, Philippines
- SMG Consultants - Indonesia
- Kumho Petrochemical, South Korea
- Therma Luzon, Inc, Philippines
- Carbofer General Trading SA - India
- Kideco Jaya Agung - Indonesia
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- Aditya Birla Group - India
- Global Green Power PLC Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Kaltim Prima Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Central Java Power - Indonesia
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