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Wednesday, 24 April 19
SHIPPING MARKET INSIGHT - IS THIS A BANKERS' MARKET? - INTERMODAL
 Over the last 10 years, many of the traditional and top lending banks have made the decision to either downsize their portfolios or even exit shipping. According to Petrofin, Top 40 shipping banks’ lending has fallen since 2008 by 25%, whilst at the same time the world fleet has grown by 28%. On top of this, out of the banks that have decided to stay in the game, not all of them have the strength, the budget and the competitive terms to do so. As a result, the availability of financing for small-medium size companies has become a scarce, hence a luxury good. In other words, even when there is available financing for these companies, its cost is really prohibitive.
Apart from the banks’ endogenous and structural issues, their shipping departments also need to decide where to allocate their budget. In an era of growing LNG demand, numerous large shipping firms invest in the very capital intensive LNG carriers. Most of the large banks are there to support their very good clients. However, this means that a big percentage of their budget (and resources in general) end up to the LNG carriers’ financing, i.e. not much budget left for the remaining sectors/shipping projects. So, when these banks are left with a limited budget to spend, they become very selective and of course their pricing goes up as the list of the waiting finance projects is significant.
But what about the alternative ways of financing for the small and medium size companies? Asian leasing has indeed filled part of the gap that was created with the traditional banks’ exit, however, again this is available for owners with larger fleets and bigger ticket sizes. Public markets have been quiet regarding shipping in general; bond markets again require significant size. Therefore, the small companies are left with the option of the so called alternative financing. Private equity and hedge funds do have the funds to invest, but this only happens when they get the return of capital that they require; given that this most of the times is a double digit figure, then the capital cost for the small/medium ship owners increases dramatically.
There are quite a few new European banks that have joined ship financing – whose pricing sits in between the one of the traditional banks and that of leasing – however, their current budget is nowhere near to filling the gap that was left after the departure of the big banks.
Therefore, small-medium size shipping companies struggle to find competitive finance terms. Someone may argue that this had always been the case, however, in today’s ship finance market it is evident that the financing of small-medium size shipping companies is not the banks’ first priority, which should not be the case given the performance of such companies during recent years. Indeed, many small-medium size companies have proved their top quality and professionalism by not only surviving the crisis but also by getting back into expansion mode. There are many ship-owning companies falling into this category. Indicatively, only in Greek shipping there are more than 150 companies that own 3-15 bulk carriers, of more than 28,000 dwt and younger than 17 years old. A big percentage of these companies are long standing and solid companies; however, face the above finance issues.
This is the clientele that will provide the bank with projects of good credit quality and at the right pricing and therefore should be the one attracting the attention of ship financiers if they wish to make their business efficient and dynamic again.
By George Laios
Deputy CEO, Intermodal Group
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms Eva Tzima
George Panagopoulos
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
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Wednesday, 10 April 19
CHINA'S GROWING THERMAL COAL SUPPLY TO PRESSURE EXPORTERS - FITCH RATINGS
Growing Chinese thermal coal supply is likely to lead to further tightening of import controls by the government, putting pressure on seaborne coal ...
Wednesday, 10 April 19
SHIPPING MARKET INSIGHT - INTERMODAL
The tragedy in Brazil’s Vale Brumadinho where a tailings dam collapsed in January ranks among the world’s worst mining disasters. It co ...
Monday, 08 April 19
5TH INDIA NUCLEAR NEW BUILD CONGRESS 2019
5th India Nuclear New Build Congress 2019
The congress in Mumbai aims to bring together representatives from governments, regulators ...
Monday, 08 April 19
THERMAL COAL PRICES FALL, INDIAN POWER PLANTS TO SEE LIMITED GAINS - BUSINESS STANDARD
Thermal coal prices are on a downward spiral globally. Australian coal prices have fallen nearly 20 per cent in the past week, and 40 per cent from ...
Monday, 08 April 19
CHEAP COAL SWELLS IN SOUTHEAST ASIA, FOILING GLOBAL GREEN PUSH - NIKKEI
Southeast Asian countries are turning to low-cost coal to satisfy their surging electricity demand as the West shies away from the fossil fuel unde ...
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Showing 1426 to 1430 news of total 6871 |
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- Power Finance Corporation Ltd., India
- Chamber of Mines of South Africa
- Ministry of Finance - Indonesia
- Bhushan Steel Limited - India
- Cement Manufacturers Association - India
- Mjunction Services Limited - India
- Energy Link Ltd, New Zealand
- Chettinad Cement Corporation Ltd - India
- Ambuja Cements Ltd - India
- Grasim Industreis Ltd - India
- South Luzon Thermal Energy Corporation
- Latin American Coal - Colombia
- Central Electricity Authority - India
- Rashtriya Ispat Nigam Limited - India
- Mercuria Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Deloitte Consulting - India
- Sinarmas Energy and Mining - Indonesia
- White Energy Company Limited
- Leighton Contractors Pty Ltd - Australia
- Ministry of Transport, Egypt
- Kapuas Tunggal Persada - Indonesia
- Savvy Resources Ltd - HongKong
- Tata Chemicals Ltd - India
- Altura Mining Limited, Indonesia
- Manunggal Multi Energi - Indonesia
- Electricity Generating Authority of Thailand
- Meralco Power Generation, Philippines
- Simpson Spence & Young - Indonesia
- Goldman Sachs - Singapore
- Malabar Cements Ltd - India
- Standard Chartered Bank - UAE
- Indian Energy Exchange, India
- VISA Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kalimantan Lumbung Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- Global Business Power Corporation, Philippines
- Sojitz Corporation - Japan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Marubeni Corporation - India
- Parry Sugars Refinery, India
- IEA Clean Coal Centre - UK
- ICICI Bank Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Singapore Mercantile Exchange
- Bangladesh Power Developement Board
- Agrawal Coal Company - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sindya Power Generating Company Private Ltd
- GAC Shipping (India) Pvt Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Parliament of New Zealand
- Star Paper Mills Limited - India
- International Coal Ventures Pvt Ltd - India
- Mercator Lines Limited - India
- Billiton Holdings Pty Ltd - Australia
- Indian Oil Corporation Limited
- PowerSource Philippines DevCo
- GVK Power & Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Global Coal Blending Company Limited - Australia
- PTC India Limited - India
- Bhoruka Overseas - Indonesia
- Price Waterhouse Coopers - Russia
- Jindal Steel & Power Ltd - India
- Intertek Mineral Services - Indonesia
- McConnell Dowell - Australia
- SN Aboitiz Power Inc, Philippines
- Africa Commodities Group - South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The Treasury - Australian Government
- Semirara Mining Corp, Philippines
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- Siam City Cement PLC, Thailand
- Bukit Makmur.PT - Indonesia
- Orica Australia Pty. Ltd.
- Directorate General of MIneral and Coal - Indonesia
- Eastern Energy - Thailand
- Coalindo Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Commonwealth Bank - Australia
- Antam Resourcindo - Indonesia
- Iligan Light & Power Inc, Philippines
- Australian Commodity Traders Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Central Java Power - Indonesia
- Ministry of Mines - Canada
- AsiaOL BioFuels Corp., Philippines
- Riau Bara Harum - Indonesia
- Romanian Commodities Exchange
- GN Power Mariveles Coal Plant, Philippines
- Uttam Galva Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Australian Coal Association
- Minerals Council of Australia
- CNBM International Corporation - China
- Offshore Bulk Terminal Pte Ltd, Singapore
- India Bulls Power Limited - India
- Directorate Of Revenue Intelligence - India
- Interocean Group of Companies - India
- Asmin Koalindo Tuhup - Indonesia
- Orica Mining Services - Indonesia
- Alfred C Toepfer International GmbH - Germany
- LBH Netherlands Bv - Netherlands
- Indogreen Group - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Edison Trading Spa - Italy
- Renaissance Capital - South Africa
- Aboitiz Power Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Merrill Lynch Commodities Europe
- Georgia Ports Authority, United States
- Karbindo Abesyapradhi - Indoneisa
- Bharathi Cement Corporation - India
- CIMB Investment Bank - Malaysia
- Maharashtra Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- Dalmia Cement Bharat India
- Sree Jayajothi Cements Limited - India
- Thiess Contractors Indonesia
- IHS Mccloskey Coal Group - USA
- Carbofer General Trading SA - India
- Borneo Indobara - Indonesia
- OPG Power Generation Pvt Ltd - India
- Rio Tinto Coal - Australia
- Sakthi Sugars Limited - India
- Kideco Jaya Agung - Indonesia
- Wood Mackenzie - Singapore
- Heidelberg Cement - Germany
- Holcim Trading Pte Ltd - Singapore
- GMR Energy Limited - India
- Metalloyd Limited - United Kingdom
- Straits Asia Resources Limited - Singapore
- Semirara Mining and Power Corporation, Philippines
- Trasteel International SA, Italy
- Jaiprakash Power Ventures ltd
- Globalindo Alam Lestari - Indonesia
- Thai Mozambique Logistica
- Kohat Cement Company Ltd. - Pakistan
- Kartika Selabumi Mining - Indonesia
- ASAPP Information Group - India
- Coal and Oil Company - UAE
- Medco Energi Mining Internasional
- Petron Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Makarim & Taira - Indonesia
- Port Waratah Coal Services - Australia
- Coastal Gujarat Power Limited - India
- TeaM Sual Corporation - Philippines
- Electricity Authority, New Zealand
- New Zealand Coal & Carbon
- Barasentosa Lestari - Indonesia
- Planning Commission, India
- Kobexindo Tractors - Indoneisa
- Economic Council, Georgia
- The State Trading Corporation of India Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Karaikal Port Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Attock Cement Pakistan Limited
- Tamil Nadu electricity Board
- Anglo American - United Kingdom
- Gujarat Mineral Development Corp Ltd - India
- PNOC Exploration Corporation - Philippines
- Aditya Birla Group - India
- London Commodity Brokers - England
- The University of Queensland
- Mintek Dendrill Indonesia
- Bhatia International Limited - India
- Bulk Trading Sa - Switzerland
- SMC Global Power, Philippines
- Formosa Plastics Group - Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Siam City Cement - Thailand
- Eastern Coal Council - USA
- Banpu Public Company Limited - Thailand
- Therma Luzon, Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- Independent Power Producers Association of India
- Larsen & Toubro Limited - India
- Maheswari Brothers Coal Limited - India
- Posco Energy - South Korea
- Timah Investasi Mineral - Indoneisa
- Vedanta Resources Plc - India
- Samtan Co., Ltd - South Korea
- Energy Development Corp, Philippines
- Vizag Seaport Private Limited - India
- Kumho Petrochemical, South Korea
- Krishnapatnam Port Company Ltd. - India
- Kaltim Prima Coal - Indonesia
- Salva Resources Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- SMG Consultants - Indonesia
- Gujarat Sidhee Cement - India
- Lanco Infratech Ltd - India
- Global Green Power PLC Corporation, Philippines
- Sical Logistics Limited - India
- Toyota Tsusho Corporation, Japan
- Cigading International Bulk Terminal - Indonesia
- Baramulti Group, Indonesia
- Xindia Steels Limited - India
- MS Steel International - UAE
- Videocon Industries ltd - India
- Madhucon Powers Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Pendopo Energi Batubara - Indonesia
- Wilmar Investment Holdings
- Indo Tambangraya Megah - Indonesia
- Indonesian Coal Mining Association
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