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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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Sunday, 02 March 14
THE FREIGHT MARKET WAS STEADY TO FIRM THIS PAST WEEK - CAPT. REDDY
COALspot.com: The freight market was steady to firm this past week. The BDI was up 7.06 pct and closed at 1258 points and the cape index was also fi ...
Friday, 28 February 14
PTBA TO INCREASE ITS COAL TERMINAL'S LOADING CAPACITY TO 25 MILLION TONS PER ANNUM BY JULY 2014
COALspot.com: PT. Bukit Asam (PTBA), the Indonesian government owned coal miner operates several coal mining units in Sumatera as well as in Kaliman ...
Friday, 28 February 14
U.S PRODUCED 1.9% LESS COAL WEEK ON WEEK
COALspot.com – United States the world’s second largest coal producer, produced approximately 18.8 million short tons (mmst) of coal in ...
Friday, 28 February 14
DRY BULK MARKET SLOWLY BUT STEADILY FINDS ITS FOOTING - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market, hit by the low seasonal demand which is a typical characteristic of the first quarter of each year, is beginning to emerge from ...
Thursday, 27 February 14
PANAMAX : MARKET CONTINUED TO DECLINE IN THE ATLANTIC
Handy
The Atlantic handy/supra market experienced a downward trend this week but not a dramatic one. TA rates are down around USD 800 w-o-w lead b ...
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Showing 3826 to 3830 news of total 6871 |
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- San Jose City I Power Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Dalmia Cement Bharat India
- Africa Commodities Group - South Africa
- Independent Power Producers Association of India
- Orica Australia Pty. Ltd.
- Leighton Contractors Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- GAC Shipping (India) Pvt Ltd
- Chamber of Mines of South Africa
- Therma Luzon, Inc, Philippines
- Tata Chemicals Ltd - India
- Bhoruka Overseas - Indonesia
- AsiaOL BioFuels Corp., Philippines
- GN Power Mariveles Coal Plant, Philippines
- ASAPP Information Group - India
- Wilmar Investment Holdings
- The Treasury - Australian Government
- Bahari Cakrawala Sebuku - Indonesia
- White Energy Company Limited
- Kepco SPC Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Minerals Council of Australia
- Pendopo Energi Batubara - Indonesia
- PNOC Exploration Corporation - Philippines
- Thai Mozambique Logistica
- LBH Netherlands Bv - Netherlands
- Mercuria Energy - Indonesia
- Edison Trading Spa - Italy
- Goldman Sachs - Singapore
- IHS Mccloskey Coal Group - USA
- CNBM International Corporation - China
- Antam Resourcindo - Indonesia
- European Bulk Services B.V. - Netherlands
- Banpu Public Company Limited - Thailand
- SMG Consultants - Indonesia
- Kumho Petrochemical, South Korea
- Agrawal Coal Company - India
- IEA Clean Coal Centre - UK
- Cement Manufacturers Association - India
- McConnell Dowell - Australia
- Iligan Light & Power Inc, Philippines
- Mintek Dendrill Indonesia
- SMC Global Power, Philippines
- Indian Energy Exchange, India
- Sarangani Energy Corporation, Philippines
- GMR Energy Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Vedanta Resources Plc - India
- Ministry of Transport, Egypt
- Marubeni Corporation - India
- Renaissance Capital - South Africa
- Thiess Contractors Indonesia
- Larsen & Toubro Limited - India
- PTC India Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining and Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Tamil Nadu electricity Board
- Aboitiz Power Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Star Paper Mills Limited - India
- Singapore Mercantile Exchange
- Makarim & Taira - Indonesia
- Meralco Power Generation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- OPG Power Generation Pvt Ltd - India
- Wood Mackenzie - Singapore
- Directorate Of Revenue Intelligence - India
- Parry Sugars Refinery, India
- Videocon Industries ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- ICICI Bank Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Coalindo Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Romanian Commodities Exchange
- Planning Commission, India
- Borneo Indobara - Indonesia
- Coastal Gujarat Power Limited - India
- Siam City Cement - Thailand
- Global Coal Blending Company Limited - Australia
- Cigading International Bulk Terminal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Timah Investasi Mineral - Indoneisa
- Georgia Ports Authority, United States
- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Orica Mining Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- Samtan Co., Ltd - South Korea
- Siam City Cement PLC, Thailand
- Australian Coal Association
- Savvy Resources Ltd - HongKong
- Electricity Authority, New Zealand
- Commonwealth Bank - Australia
- Coal and Oil Company - UAE
- Heidelberg Cement - Germany
- CIMB Investment Bank - Malaysia
- Standard Chartered Bank - UAE
- Grasim Industreis Ltd - India
- Energy Link Ltd, New Zealand
- Chettinad Cement Corporation Ltd - India
- Kobexindo Tractors - Indoneisa
- Anglo American - United Kingdom
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Riau Bara Harum - Indonesia
- Malabar Cements Ltd - India
- Bhushan Steel Limited - India
- International Coal Ventures Pvt Ltd - India
- Deloitte Consulting - India
- Eastern Coal Council - USA
- MS Steel International - UAE
- Formosa Plastics Group - Taiwan
- Medco Energi Mining Internasional
- Energy Development Corp, Philippines
- Central Electricity Authority - India
- Simpson Spence & Young - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Mjunction Services Limited - India
- Posco Energy - South Korea
- Salva Resources Pvt Ltd - India
- Bangladesh Power Developement Board
- Kartika Selabumi Mining - Indonesia
- Carbofer General Trading SA - India
- Ind-Barath Power Infra Limited - India
- Price Waterhouse Coopers - Russia
- Sree Jayajothi Cements Limited - India
- Sakthi Sugars Limited - India
- Aditya Birla Group - India
- Petron Corporation, Philippines
- Electricity Generating Authority of Thailand
- Kalimantan Lumbung Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Ambuja Cements Ltd - India
- Parliament of New Zealand
- Interocean Group of Companies - India
- Sinarmas Energy and Mining - Indonesia
- GVK Power & Infra Limited - India
- Vizag Seaport Private Limited - India
- Global Green Power PLC Corporation, Philippines
- The University of Queensland
- Meenaskhi Energy Private Limited - India
- Latin American Coal - Colombia
- Vijayanagar Sugar Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Eastern Energy - Thailand
- Billiton Holdings Pty Ltd - Australia
- India Bulls Power Limited - India
- TeaM Sual Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Indian Oil Corporation Limited
- South Luzon Thermal Energy Corporation
- Indogreen Group - Indonesia
- Indika Energy - Indonesia
- Australian Commodity Traders Exchange
- Mercator Lines Limited - India
- London Commodity Brokers - England
- Gujarat Sidhee Cement - India
- Bukit Asam (Persero) Tbk - Indonesia
- Central Java Power - Indonesia
- Oldendorff Carriers - Singapore
- Neyveli Lignite Corporation Ltd, - India
- PowerSource Philippines DevCo
- Jindal Steel & Power Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Karaikal Port Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Global Business Power Corporation, Philippines
- Ministry of Mines - Canada
- Bharathi Cement Corporation - India
- Indo Tambangraya Megah - Indonesia
- Altura Mining Limited, Indonesia
- Bulk Trading Sa - Switzerland
- Rio Tinto Coal - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- The State Trading Corporation of India Ltd
- Attock Cement Pakistan Limited
- Bayan Resources Tbk. - Indonesia
- New Zealand Coal & Carbon
- Essar Steel Hazira Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Bhatia International Limited - India
- Sical Logistics Limited - India
- VISA Power Limited - India
- Manunggal Multi Energi - Indonesia
- Madhucon Powers Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Makmur.PT - Indonesia
- Power Finance Corporation Ltd., India
- Baramulti Group, Indonesia
- Toyota Tsusho Corporation, Japan
- Ministry of Finance - Indonesia
- Straits Asia Resources Limited - Singapore
- Trasteel International SA, Italy
- Lanco Infratech Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Sojitz Corporation - Japan
- PetroVietnam Power Coal Import and Supply Company
- Indonesian Coal Mining Association
- Metalloyd Limited - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Rashtriya Ispat Nigam Limited - India
- Port Waratah Coal Services - Australia
- Economic Council, Georgia
- Pipit Mutiara Jaya. PT, Indonesia
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