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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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- Orica Mining Services - Indonesia
- Therma Luzon, Inc, Philippines
- Bhoruka Overseas - Indonesia
- IEA Clean Coal Centre - UK
- PNOC Exploration Corporation - Philippines
- White Energy Company Limited
- Mintek Dendrill Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Dalmia Cement Bharat India
- Oldendorff Carriers - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- LBH Netherlands Bv - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Wilmar Investment Holdings
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Baiduri Energy - Indonesia
- Latin American Coal - Colombia
- Samtan Co., Ltd - South Korea
- Barasentosa Lestari - Indonesia
- Ministry of Transport, Egypt
- Global Green Power PLC Corporation, Philippines
- Indian Oil Corporation Limited
- Krishnapatnam Port Company Ltd. - India
- Attock Cement Pakistan Limited
- The Treasury - Australian Government
- Eastern Energy - Thailand
- Intertek Mineral Services - Indonesia
- Minerals Council of Australia
- Ceylon Electricity Board - Sri Lanka
- Karaikal Port Pvt Ltd - India
- Tamil Nadu electricity Board
- Straits Asia Resources Limited - Singapore
- Semirara Mining and Power Corporation, Philippines
- PTC India Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Kaltim Prima Coal - Indonesia
- Petron Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- OPG Power Generation Pvt Ltd - India
- Edison Trading Spa - Italy
- SMC Global Power, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Kepco SPC Power Corporation, Philippines
- Bhatia International Limited - India
- Heidelberg Cement - Germany
- Mjunction Services Limited - India
- Ind-Barath Power Infra Limited - India
- Binh Thuan Hamico - Vietnam
- Gujarat Sidhee Cement - India
- TeaM Sual Corporation - Philippines
- Madhucon Powers Ltd - India
- Wood Mackenzie - Singapore
- Salva Resources Pvt Ltd - India
- Bhushan Steel Limited - India
- IHS Mccloskey Coal Group - USA
- Meralco Power Generation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sical Logistics Limited - India
- Makarim & Taira - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indogreen Group - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Merrill Lynch Commodities Europe
- Coastal Gujarat Power Limited - India
- Ambuja Cements Ltd - India
- Toyota Tsusho Corporation, Japan
- Carbofer General Trading SA - India
- CIMB Investment Bank - Malaysia
- Cement Manufacturers Association - India
- Global Business Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- PowerSource Philippines DevCo
- Vedanta Resources Plc - India
- McConnell Dowell - Australia
- Directorate Of Revenue Intelligence - India
- Kobexindo Tractors - Indoneisa
- Independent Power Producers Association of India
- Mercator Lines Limited - India
- Thiess Contractors Indonesia
- GMR Energy Limited - India
- Bharathi Cement Corporation - India
- Jindal Steel & Power Ltd - India
- Manunggal Multi Energi - Indonesia
- Sree Jayajothi Cements Limited - India
- Medco Energi Mining Internasional
- Deloitte Consulting - India
- Trasteel International SA, Italy
- India Bulls Power Limited - India
- Altura Mining Limited, Indonesia
- The State Trading Corporation of India Ltd
- Electricity Generating Authority of Thailand
- MS Steel International - UAE
- Maharashtra Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Anglo American - United Kingdom
- Ministry of Finance - Indonesia
- Commonwealth Bank - Australia
- Neyveli Lignite Corporation Ltd, - India
- Meenaskhi Energy Private Limited - India
- Lanco Infratech Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Standard Chartered Bank - UAE
- Larsen & Toubro Limited - India
- Malabar Cements Ltd - India
- VISA Power Limited - India
- Renaissance Capital - South Africa
- Grasim Industreis Ltd - India
- Borneo Indobara - Indonesia
- Bulk Trading Sa - Switzerland
- Jaiprakash Power Ventures ltd
- New Zealand Coal & Carbon
- Antam Resourcindo - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Sarangani Energy Corporation, Philippines
- Indonesian Coal Mining Association
- Kideco Jaya Agung - Indonesia
- Holcim Trading Pte Ltd - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Economic Council, Georgia
- ASAPP Information Group - India
- Singapore Mercantile Exchange
- GAC Shipping (India) Pvt Ltd
- SMG Consultants - Indonesia
- Sakthi Sugars Limited - India
- Price Waterhouse Coopers - Russia
- Miang Besar Coal Terminal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Siam City Cement - Thailand
- Timah Investasi Mineral - Indoneisa
- Baramulti Group, Indonesia
- Posco Energy - South Korea
- AsiaOL BioFuels Corp., Philippines
- Aditya Birla Group - India
- Chettinad Cement Corporation Ltd - India
- Tata Chemicals Ltd - India
- Indika Energy - Indonesia
- Coalindo Energy - Indonesia
- Power Finance Corporation Ltd., India
- Energy Link Ltd, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- Sinarmas Energy and Mining - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Central Java Power - Indonesia
- Mercuria Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Kartika Selabumi Mining - Indonesia
- Ministry of Mines - Canada
- Parliament of New Zealand
- Bangladesh Power Developement Board
- Siam City Cement PLC, Thailand
- Billiton Holdings Pty Ltd - Australia
- Goldman Sachs - Singapore
- Global Coal Blending Company Limited - Australia
- Chamber of Mines of South Africa
- London Commodity Brokers - England
- Banpu Public Company Limited - Thailand
- Planning Commission, India
- Kumho Petrochemical, South Korea
- SN Aboitiz Power Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Xindia Steels Limited - India
- Formosa Plastics Group - Taiwan
- Indo Tambangraya Megah - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Africa Commodities Group - South Africa
- Vizag Seaport Private Limited - India
- Essar Steel Hazira Ltd - India
- Thai Mozambique Logistica
- Australian Coal Association
- International Coal Ventures Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- CNBM International Corporation - China
- ICICI Bank Limited - India
- Semirara Mining Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Bukit Makmur.PT - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Eastern Coal Council - USA
- Savvy Resources Ltd - HongKong
- Sojitz Corporation - Japan
- Electricity Authority, New Zealand
- Energy Development Corp, Philippines
- South Luzon Thermal Energy Corporation
- The University of Queensland
- Pendopo Energi Batubara - Indonesia
- European Bulk Services B.V. - Netherlands
- San Jose City I Power Corp, Philippines
- Riau Bara Harum - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Parry Sugars Refinery, India
- Indian Energy Exchange, India
- Videocon Industries ltd - India
- GVK Power & Infra Limited - India
- Port Waratah Coal Services - Australia
- Georgia Ports Authority, United States
- Interocean Group of Companies - India
- TNB Fuel Sdn Bhd - Malaysia
- Star Paper Mills Limited - India
- Agrawal Coal Company - India
- Central Electricity Authority - India
- Coal and Oil Company - UAE
- Rio Tinto Coal - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Marubeni Corporation - India
- Kapuas Tunggal Persada - Indonesia
- Orica Australia Pty. Ltd.
- Romanian Commodities Exchange
- Uttam Galva Steels Limited - India
- Metalloyd Limited - United Kingdom
- Australian Commodity Traders Exchange
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