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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, 07 March 14
INDONESIA TO PRODUCE 421 MMT OF COAL IN 2014
Coalspot.com: Indonesia finally agreed to increased 2014 coal output by as much as 6 percent to 421 million metric tons from its previous plan, a se ...
Friday, 07 March 14
US PRODUCED 19.4 MMST OF COAL IN PAST 7 DAYS, SAYS EIA
COALspot.com – United States the world’s second largest coal producer, produced approximately 19.4 million short tons (mmst) of coal in ...
Thursday, 06 March 14
PANAMAX MARKET IS STRUGGLING IN BOTH HEMISPHERES - FEARNRESEARCH
Handy
The Handy/Supra market experienced a rate increase in the Pacific. The activity itself is not too big, but spot tonnage is clearing up and ow ...
Wednesday, 05 March 14
THE BIG BULKERS HAVE IN FACT WITNESSED SIGNIFICANT IMPROVEMENTS IN BOTH BASINS
The BDI continues to gain back some of the lost ground, although in reality there isn't a lot to celebrate abou ...
Wednesday, 05 March 14
LEAVE IT TO CAPES TO CHANGE THE DIRECTION OF THE DRY BULK MARKET - INTERMODAL
Chartering (Wet: Stable- / Dry: Stable+)
Leave it to Capes to change the direction of the Dry Bulk market. The big bulkers managed to drag the BDI ...
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Showing 3816 to 3820 news of total 6871 |
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- Dalmia Cement Bharat India
- LBH Netherlands Bv - Netherlands
- Indo Tambangraya Megah - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Electricity Generating Authority of Thailand
- Formosa Plastics Group - Taiwan
- PNOC Exploration Corporation - Philippines
- Jorong Barutama Greston.PT - Indonesia
- ASAPP Information Group - India
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Alfred C Toepfer International GmbH - Germany
- Coastal Gujarat Power Limited - India
- Ministry of Mines - Canada
- Jaiprakash Power Ventures ltd
- Commonwealth Bank - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kepco SPC Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Cigading International Bulk Terminal - Indonesia
- Energy Link Ltd, New Zealand
- Wilmar Investment Holdings
- Eastern Coal Council - USA
- San Jose City I Power Corp, Philippines
- CNBM International Corporation - China
- Vijayanagar Sugar Pvt Ltd - India
- MS Steel International - UAE
- Jindal Steel & Power Ltd - India
- Siam City Cement - Thailand
- Merrill Lynch Commodities Europe
- Vizag Seaport Private Limited - India
- Edison Trading Spa - Italy
- Sical Logistics Limited - India
- Kideco Jaya Agung - Indonesia
- Bulk Trading Sa - Switzerland
- Sinarmas Energy and Mining - Indonesia
- Semirara Mining Corp, Philippines
- Australian Commodity Traders Exchange
- Ceylon Electricity Board - Sri Lanka
- Price Waterhouse Coopers - Russia
- Samtan Co., Ltd - South Korea
- The Treasury - Australian Government
- Billiton Holdings Pty Ltd - Australia
- Kartika Selabumi Mining - Indonesia
- Independent Power Producers Association of India
- Siam City Cement PLC, Thailand
- Interocean Group of Companies - India
- Anglo American - United Kingdom
- Asmin Koalindo Tuhup - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Sindya Power Generating Company Private Ltd
- SN Aboitiz Power Inc, Philippines
- Georgia Ports Authority, United States
- Romanian Commodities Exchange
- Tata Chemicals Ltd - India
- Sojitz Corporation - Japan
- India Bulls Power Limited - India
- Energy Development Corp, Philippines
- Kumho Petrochemical, South Korea
- Binh Thuan Hamico - Vietnam
- Makarim & Taira - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Globalindo Alam Lestari - Indonesia
- Planning Commission, India
- Deloitte Consulting - India
- IEA Clean Coal Centre - UK
- Gujarat Sidhee Cement - India
- Rashtriya Ispat Nigam Limited - India
- Therma Luzon, Inc, Philippines
- Trasteel International SA, Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Heidelberg Cement - Germany
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coalindo Energy - Indonesia
- Larsen & Toubro Limited - India
- Wood Mackenzie - Singapore
- Mjunction Services Limited - India
- Attock Cement Pakistan Limited
- Simpson Spence & Young - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhushan Steel Limited - India
- Power Finance Corporation Ltd., India
- Pendopo Energi Batubara - Indonesia
- Bukit Makmur.PT - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Metalloyd Limited - United Kingdom
- Sakthi Sugars Limited - India
- Ind-Barath Power Infra Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Orica Mining Services - Indonesia
- Thiess Contractors Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Indonesian Coal Mining Association
- Pipit Mutiara Jaya. PT, Indonesia
- Australian Coal Association
- Indika Energy - Indonesia
- Africa Commodities Group - South Africa
- Port Waratah Coal Services - Australia
- Toyota Tsusho Corporation, Japan
- Global Business Power Corporation, Philippines
- Grasim Industreis Ltd - India
- SMG Consultants - Indonesia
- Medco Energi Mining Internasional
- Aditya Birla Group - India
- New Zealand Coal & Carbon
- Singapore Mercantile Exchange
- Parliament of New Zealand
- Oldendorff Carriers - Singapore
- Cement Manufacturers Association - India
- Meenaskhi Energy Private Limited - India
- Ambuja Cements Ltd - India
- Karaikal Port Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Semirara Mining and Power Corporation, Philippines
- Bhatia International Limited - India
- Miang Besar Coal Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Mineral Development Corp Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- PowerSource Philippines DevCo
- Timah Investasi Mineral - Indoneisa
- London Commodity Brokers - England
- Parry Sugars Refinery, India
- Ministry of Transport, Egypt
- Baramulti Group, Indonesia
- Latin American Coal - Colombia
- Bhoruka Overseas - Indonesia
- Borneo Indobara - Indonesia
- Chamber of Mines of South Africa
- Indian Energy Exchange, India
- Marubeni Corporation - India
- Goldman Sachs - Singapore
- Madhucon Powers Ltd - India
- Orica Australia Pty. Ltd.
- Tamil Nadu electricity Board
- PTC India Limited - India
- Uttam Galva Steels Limited - India
- OPG Power Generation Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Altura Mining Limited, Indonesia
- Banpu Public Company Limited - Thailand
- Bukit Baiduri Energy - Indonesia
- Eastern Energy - Thailand
- VISA Power Limited - India
- Malabar Cements Ltd - India
- Central Electricity Authority - India
- Bharathi Cement Corporation - India
- Salva Resources Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Savvy Resources Ltd - HongKong
- Minerals Council of Australia
- Indian Oil Corporation Limited
- Indogreen Group - Indonesia
- White Energy Company Limited
- Thai Mozambique Logistica
- Mercuria Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Vedanta Resources Plc - India
- Global Coal Blending Company Limited - Australia
- Electricity Authority, New Zealand
- Mintek Dendrill Indonesia
- SMC Global Power, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Coal and Oil Company - UAE
- GVK Power & Infra Limited - India
- Agrawal Coal Company - India
- Videocon Industries ltd - India
- Iligan Light & Power Inc, Philippines
- Antam Resourcindo - Indonesia
- Bangladesh Power Developement Board
- Rio Tinto Coal - Australia
- Directorate Of Revenue Intelligence - India
- Kobexindo Tractors - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- ICICI Bank Limited - India
- GMR Energy Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Chettinad Cement Corporation Ltd - India
- GAC Shipping (India) Pvt Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercator Lines Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Carbofer General Trading SA - India
- The State Trading Corporation of India Ltd
- Star Paper Mills Limited - India
- McConnell Dowell - Australia
- Central Java Power - Indonesia
- Posco Energy - South Korea
- Maharashtra Electricity Regulatory Commission - India
- Economic Council, Georgia
- Manunggal Multi Energi - Indonesia
- Meralco Power Generation, Philippines
- European Bulk Services B.V. - Netherlands
- Global Green Power PLC Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Riau Bara Harum - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Leighton Contractors Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Renaissance Capital - South Africa
- South Luzon Thermal Energy Corporation
- IHS Mccloskey Coal Group - USA
- Maheswari Brothers Coal Limited - India
- Standard Chartered Bank - UAE
- Petron Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Sree Jayajothi Cements Limited - India
- Lanco Infratech Ltd - India
- Aboitiz Power Corporation - Philippines
- TeaM Sual Corporation - Philippines
- CIMB Investment Bank - Malaysia
- The University of Queensland
- Essar Steel Hazira Ltd - India
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