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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 $125bn... Whilst the presence of “new” money is duly noted, we all need to realize that the industry must be able to carry its own weight. If that means changing our processes, transparency levels, corporate responsibility standards, etc. in order to bridge this gap and attract a greater share of their attention, then maybe this is a change we should embrace", Dermatis concluded.
Meanwhile, in the dry bulk market this past week, things continued to improve on the back of rates for the smaller size segments holding on to their levels and those for Capes correcting upwards, said Intermodal, while the spill-overs of the improved sentiment have yet to affect the Panamax market. Nevertheless, the BDI ended yesterday on yet another higher note, ending the session at 1,222 points.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Tuesday, 18 March 14
SECOND QUARTER SUB-BIT FOB INDONESIA COAL SWAP LOST 3.27% IN A MONTH
COALspot.com – Indonesia, the world’s largest exporter of the thermal coal's swaps for delivery April - June 2014 gained this pa ...
Tuesday, 18 March 14
NEWCASTLE COAL EXPORT VOLUME FALLS 26.23% WEEK ON WEEK
COALspot.com: In the week ended 17 March 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, total 2 ...
Monday, 17 March 14
API 8 CFR SOUTH CHINA COAL SWAPS FOR AVERAGE Q2 14 DELIVERIES LOST 2.59% M-O-M
COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 deliveries lost 2.59 percent month on month and closed at US$ 74.15 per mt as o ...
Sunday, 16 March 14
BDI DOWN ON LOW CAPESIZE ACTIVITY
COALspot.com: The freight market was slightly soft this week with BDI down by 4.28 pct week on week. The BDI closed at 1,477 points and the cape ...
Friday, 14 March 14
DRY BULK MARKET ENTERS RECOVERY MODE, ON INCREASED CAPESIZE DEMAND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has entered and sustained higher ground as of this week, on the back on increased Capesize demand. Although the situation in ...
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- Jorong Barutama Greston.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Independent Power Producers Association of India
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Intertek Mineral Services - Indonesia
- Borneo Indobara - Indonesia
- Dalmia Cement Bharat India
- ICICI Bank Limited - India
- Bulk Trading Sa - Switzerland
- Standard Chartered Bank - UAE
- Sindya Power Generating Company Private Ltd
- Goldman Sachs - Singapore
- Kaltim Prima Coal - Indonesia
- Bangladesh Power Developement Board
- ASAPP Information Group - India
- Banpu Public Company Limited - Thailand
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement - Thailand
- Bukit Makmur.PT - Indonesia
- Price Waterhouse Coopers - Russia
- MS Steel International - UAE
- The University of Queensland
- Therma Luzon, Inc, Philippines
- Jindal Steel & Power Ltd - India
- Carbofer General Trading SA - India
- SN Aboitiz Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Karaikal Port Pvt Ltd - India
- White Energy Company Limited
- GVK Power & Infra Limited - India
- Electricity Authority, New Zealand
- Orica Australia Pty. Ltd.
- Australian Coal Association
- Ministry of Transport, Egypt
- PNOC Exploration Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Mintek Dendrill Indonesia
- Coastal Gujarat Power Limited - India
- Energy Development Corp, Philippines
- Minerals Council of Australia
- Central Java Power - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indian Energy Exchange, India
- Heidelberg Cement - Germany
- Maheswari Brothers Coal Limited - India
- Essar Steel Hazira Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Posco Energy - South Korea
- Alfred C Toepfer International GmbH - Germany
- Bharathi Cement Corporation - India
- Leighton Contractors Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Interocean Group of Companies - India
- Antam Resourcindo - Indonesia
- Latin American Coal - Colombia
- SMC Global Power, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Eastern Energy - Thailand
- Sinarmas Energy and Mining - Indonesia
- Sakthi Sugars Limited - India
- Romanian Commodities Exchange
- Agrawal Coal Company - India
- Eastern Coal Council - USA
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Singapore Mercantile Exchange
- IEA Clean Coal Centre - UK
- Bhushan Steel Limited - India
- Australian Commodity Traders Exchange
- Ambuja Cements Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Directorate Of Revenue Intelligence - India
- Ministry of Finance - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Ind-Barath Power Infra Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PowerSource Philippines DevCo
- Malabar Cements Ltd - India
- The State Trading Corporation of India Ltd
- Economic Council, Georgia
- PetroVietnam Power Coal Import and Supply Company
- Bayan Resources Tbk. - Indonesia
- PTC India Limited - India
- Power Finance Corporation Ltd., India
- Chettinad Cement Corporation Ltd - India
- Indika Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Madhucon Powers Ltd - India
- Parry Sugars Refinery, India
- Ministry of Mines - Canada
- Pendopo Energi Batubara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- London Commodity Brokers - England
- GN Power Mariveles Coal Plant, Philippines
- Energy Link Ltd, New Zealand
- Rio Tinto Coal - Australia
- CIMB Investment Bank - Malaysia
- Cement Manufacturers Association - India
- South Luzon Thermal Energy Corporation
- Commonwealth Bank - Australia
- Grasim Industreis Ltd - India
- Lanco Infratech Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Timah Investasi Mineral - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- McConnell Dowell - Australia
- AsiaOL BioFuels Corp., Philippines
- Binh Thuan Hamico - Vietnam
- Siam City Cement PLC, Thailand
- Star Paper Mills Limited - India
- Mercator Lines Limited - India
- Meenaskhi Energy Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Edison Trading Spa - Italy
- Sical Logistics Limited - India
- Kideco Jaya Agung - Indonesia
- Altura Mining Limited, Indonesia
- CNBM International Corporation - China
- Coalindo Energy - Indonesia
- Makarim & Taira - Indonesia
- Kepco SPC Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Manunggal Multi Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- Deloitte Consulting - India
- Orica Mining Services - Indonesia
- Sree Jayajothi Cements Limited - India
- Savvy Resources Ltd - HongKong
- Mjunction Services Limited - India
- Straits Asia Resources Limited - Singapore
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- Chamber of Mines of South Africa
- Vizag Seaport Private Limited - India
- Mercuria Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Toyota Tsusho Corporation, Japan
- Kobexindo Tractors - Indoneisa
- IHS Mccloskey Coal Group - USA
- Wilmar Investment Holdings
- Parliament of New Zealand
- New Zealand Coal & Carbon
- Merrill Lynch Commodities Europe
- Kalimantan Lumbung Energi - Indonesia
- Baramulti Group, Indonesia
- Samtan Co., Ltd - South Korea
- Global Coal Blending Company Limited - Australia
- TeaM Sual Corporation - Philippines
- Medco Energi Mining Internasional
- Tata Chemicals Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- Simpson Spence & Young - Indonesia
- Riau Bara Harum - Indonesia
- Gujarat Sidhee Cement - India
- Global Green Power PLC Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Global Business Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- GMR Energy Limited - India
- Port Waratah Coal Services - Australia
- Georgia Ports Authority, United States
- Indian Oil Corporation Limited
- Videocon Industries ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Tamil Nadu electricity Board
- Bhatia International Limited - India
- Marubeni Corporation - India
- Africa Commodities Group - South Africa
- Salva Resources Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Trasteel International SA, Italy
- Indonesian Coal Mining Association
- VISA Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indogreen Group - Indonesia
- Kumho Petrochemical, South Korea
- TNB Fuel Sdn Bhd - Malaysia
- San Jose City I Power Corp, Philippines
- SMG Consultants - Indonesia
- Anglo American - United Kingdom
- Globalindo Alam Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Aditya Birla Group - India
- Indo Tambangraya Megah - Indonesia
- Jaiprakash Power Ventures ltd
- Uttam Galva Steels Limited - India
- Attock Cement Pakistan Limited
- Coal and Oil Company - UAE
- Semirara Mining Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Semirara Mining and Power Corporation, Philippines
- India Bulls Power Limited - India
- Thai Mozambique Logistica
- Sojitz Corporation - Japan
- The Treasury - Australian Government
- Wood Mackenzie - Singapore
- Central Electricity Authority - India
- Larsen & Toubro Limited - India
- Bhoruka Overseas - Indonesia
- Petron Corporation, Philippines
- Xindia Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- Planning Commission, India
- Thiess Contractors Indonesia
- Meralco Power Generation, Philippines
- International Coal Ventures Pvt Ltd - India
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