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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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Monday, 24 February 14
DRY BULK MARKET TO IMPROVE OVER THE COURSE OF 2014, BUT OVERSUPPLY STILL AN ISSUE SAYS BIMCO'S CHIEF SHIPPING ANALYST
As a gruelling first quarter edges closer to the end, dry bulk ship owners are looking at an improved second quarter demand, which, coupled with slo ...
Monday, 24 February 14
INDONESIAN SUB-BITUMINOUS COAL SWAP FOR DELIVERY APRIL - JUNE 2014 SLIDES TO $ 58.60 PMT
COALspot.com – Indonesia, the world’s the largest exporter of the thermal coal's swaps for delivery April - June 2014 slide week ended ...
Monday, 24 February 14
Q1 2015 DELIVERY COAL SWAP CLOSED AT 2.62% HIGHER THAN Q2 2014 CLOSING SWAPS
COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 deliveries lost 2.68 percent month on month and closed at US$ 76.20 per mt as on Fr ...
Saturday, 22 February 14
SHIPPING POISED TO RALLY AFTER SEVERAL WEEKS OF DROP
COALspot.com: The freight market was steady to firm with the dry bulk index up by 6.24 pct closing at 1,175 points week on week and the cape index w ...
Saturday, 22 February 14
POTEN RAISES THE QUESTION OF ACCURACY IN CALCULATING TANKER FREIGHT RATES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
As the tanker market has grown in complexity over the course of the past few years, the question of whether the traditional methods of assessing rat ...
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- Commonwealth Bank - Australia
- Bukit Baiduri Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Ministry of Mines - Canada
- Bhushan Steel Limited - India
- Australian Coal Association
- Wilmar Investment Holdings
- Bulk Trading Sa - Switzerland
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement PLC, Thailand
- Standard Chartered Bank - UAE
- Parliament of New Zealand
- Electricity Authority, New Zealand
- Krishnapatnam Port Company Ltd. - India
- Savvy Resources Ltd - HongKong
- Indika Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Karaikal Port Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- McConnell Dowell - Australia
- Bayan Resources Tbk. - Indonesia
- Jindal Steel & Power Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Africa Commodities Group - South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- IHS Mccloskey Coal Group - USA
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Makmur.PT - Indonesia
- Eastern Coal Council - USA
- Kalimantan Lumbung Energi - Indonesia
- Energy Link Ltd, New Zealand
- Eastern Energy - Thailand
- PowerSource Philippines DevCo
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Deloitte Consulting - India
- Independent Power Producers Association of India
- PNOC Exploration Corporation - Philippines
- Videocon Industries ltd - India
- Carbofer General Trading SA - India
- Tata Chemicals Ltd - India
- Anglo American - United Kingdom
- Cement Manufacturers Association - India
- Madhucon Powers Ltd - India
- Sakthi Sugars Limited - India
- Thiess Contractors Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Heidelberg Cement - Germany
- Gujarat Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Indo Tambangraya Megah - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Port Waratah Coal Services - Australia
- Antam Resourcindo - Indonesia
- MS Steel International - UAE
- Directorate General of MIneral and Coal - Indonesia
- Thai Mozambique Logistica
- Ambuja Cements Ltd - India
- Jaiprakash Power Ventures ltd
- TNB Fuel Sdn Bhd - Malaysia
- LBH Netherlands Bv - Netherlands
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- Sojitz Corporation - Japan
- Georgia Ports Authority, United States
- Ministry of Finance - Indonesia
- Larsen & Toubro Limited - India
- Mintek Dendrill Indonesia
- TeaM Sual Corporation - Philippines
- IEA Clean Coal Centre - UK
- The Treasury - Australian Government
- South Luzon Thermal Energy Corporation
- Essar Steel Hazira Ltd - India
- Borneo Indobara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Agrawal Coal Company - India
- Manunggal Multi Energi - Indonesia
- Meenaskhi Energy Private Limited - India
- India Bulls Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mercator Lines Limited - India
- GVK Power & Infra Limited - India
- Indian Energy Exchange, India
- Edison Trading Spa - Italy
- Baramulti Group, Indonesia
- International Coal Ventures Pvt Ltd - India
- White Energy Company Limited
- Bhatia International Limited - India
- Central Java Power - Indonesia
- Kideco Jaya Agung - Indonesia
- Maheswari Brothers Coal Limited - India
- Iligan Light & Power Inc, Philippines
- Interocean Group of Companies - India
- Attock Cement Pakistan Limited
- Straits Asia Resources Limited - Singapore
- Pendopo Energi Batubara - Indonesia
- London Commodity Brokers - England
- Gujarat Mineral Development Corp Ltd - India
- Kumho Petrochemical, South Korea
- PTC India Limited - India
- Energy Development Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- VISA Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- Meralco Power Generation, Philippines
- GMR Energy Limited - India
- Indonesian Coal Mining Association
- Tamil Nadu electricity Board
- Karbindo Abesyapradhi - Indoneisa
- Malabar Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- Romanian Commodities Exchange
- Mjunction Services Limited - India
- Vedanta Resources Plc - India
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Star Paper Mills Limited - India
- Simpson Spence & Young - Indonesia
- Indogreen Group - Indonesia
- Bharathi Cement Corporation - India
- Minerals Council of Australia
- Coal and Oil Company - UAE
- Posco Energy - South Korea
- SN Aboitiz Power Inc, Philippines
- Sarangani Energy Corporation, Philippines
- Gujarat Sidhee Cement - India
- Timah Investasi Mineral - Indoneisa
- Directorate Of Revenue Intelligence - India
- Chettinad Cement Corporation Ltd - India
- Kobexindo Tractors - Indoneisa
- SMC Global Power, Philippines
- Samtan Co., Ltd - South Korea
- Parry Sugars Refinery, India
- Kepco SPC Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- ASAPP Information Group - India
- Therma Luzon, Inc, Philippines
- Salva Resources Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Price Waterhouse Coopers - Russia
- Ministry of Transport, Egypt
- Rashtriya Ispat Nigam Limited - India
- Australian Commodity Traders Exchange
- Kapuas Tunggal Persada - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Semirara Mining Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Makarim & Taira - Indonesia
- Formosa Plastics Group - Taiwan
- Global Business Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Wood Mackenzie - Singapore
- Trasteel International SA, Italy
- Lanco Infratech Ltd - India
- Banpu Public Company Limited - Thailand
- New Zealand Coal & Carbon
- European Bulk Services B.V. - Netherlands
- Siam City Cement - Thailand
- Aditya Birla Group - India
- Indian Oil Corporation Limited
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
- SMG Consultants - Indonesia
- Metalloyd Limited - United Kingdom
- Central Electricity Authority - India
- Economic Council, Georgia
- Uttam Galva Steels Limited - India
- Mercuria Energy - Indonesia
- The University of Queensland
- Bank of Tokyo Mitsubishi UFJ Ltd
- CIMB Investment Bank - Malaysia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Alfred C Toepfer International GmbH - Germany
- Coastal Gujarat Power Limited - India
- Power Finance Corporation Ltd., India
- The State Trading Corporation of India Ltd
- Grasim Industreis Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Orica Australia Pty. Ltd.
- Billiton Holdings Pty Ltd - Australia
- Toyota Tsusho Corporation, Japan
- Planning Commission, India
- Aboitiz Power Corporation - Philippines
- Merrill Lynch Commodities Europe
- San Jose City I Power Corp, Philippines
- Sindya Power Generating Company Private Ltd
- Altura Mining Limited, Indonesia
- Marubeni Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Petron Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Bangladesh Power Developement Board
- PetroVietnam Power Coal Import and Supply Company
- Dalmia Cement Bharat India
- ICICI Bank Limited - India
- Goldman Sachs - Singapore
- Semirara Mining and Power Corporation, Philippines
- Renaissance Capital - South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Latin American Coal - Colombia
- OPG Power Generation Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Riau Bara Harum - Indonesia
- Rio Tinto Coal - Australia
- Sical Logistics Limited - India
- Chamber of Mines of South Africa
- Singapore Mercantile Exchange
- Oldendorff Carriers - Singapore
- Kohat Cement Company Ltd. - Pakistan
- GAC Shipping (India) Pvt Ltd
- Orica Mining Services - Indonesia
- Medco Energi Mining Internasional
- Kartika Selabumi Mining - Indonesia
- Intertek Mineral Services - Indonesia
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