Bank Of India News

BSE-listed Swan Energy, via its 51% subsidiary Triumph Offshore Private Limited (TOPL), said Friday it had executed a term sheet with Turkey's BOTAS to lease an FSRU vessel to the Turkish firm.The term sheet, signed on December 31, is for chartering the FSRU vessel 'Vasant l' for 365 days at a dayrate of $250,000.TOPL is financed by a consortium of bankers, with State Bank of India as the Lead Bank.Swan Energy issued a statement on the term sheet following media reports. It said separately that it hadn't informed the market of the term sheet with BOTAS as it had waited for approval from the consortium of bankers financing TOPL."[TOPL] had applied for lenders' approval for chartering of vessel with the charterer, which is pending to be received.

The United States has expressed concern to India that it was being used to export fuel made from Russian crude, through high-seas transfers to hide its origin, to New York in violation of U.S. sanctions, a top Indian central banker said on Saturday.The U.S. Treasury Department told India that an Indian ship picked up oil from a Russian tanker on the high seas and brought it to a port in Gujarat on the west coast, where it was refined and shipped on, said Reserve Bank of India Deputy Governor Michael Patra.U.S.

Farmers and fishermen in western India have welcomed a U.S. Supreme Court decision to hear their lawsuit against a World Bank agency, which financed a power plant they blame for damaging the environment and their livelihoods.The U.S. Supreme Court on Monday agreed to hear an appeal by the villagers of a lower court ruling that the International Finance Corp (IFC) was immune from such lawsuits under federal law.The court must now consider for the first time whether international organisations are immune from such suits under federal law…

The Government of Sri Lanka approved loans to develop both the Kankesanthurai (KKS) Harbour and the northern section of the Colombo Port. For the reconstruction of the KKS harbour, a credit line agreement between the Export-Import Bank of India and the Sri Lankan Government was signed. Accordingly, a $ 45.17 million credit line from India will be used to finance the restoration of the KKS Harbour, which is to be transformed into a self-sustainable, commercial harbour. This project is line with the Government’s North-East Economic Corridor concept to develop trade in the northern and eastern ports/harbours. The restoration of the KKS…

UK-based global metals and engineering firm controlled by billionaire Sanjeev Gupta Liberty House Group is planning to buy-out India's debt-laden ABG Shipyard. According to a report in the Business Standard, Liberty House has proposed a new business model to the National Company Law Tribunal (NCLT) as part of its acquisition plan of ABG Shipyard. The plan includes a ship breaking facility, along with the existing shipbuilding and repair space. The newspaper report quoted sources saying that the negotiations are on. There will be more clarity on the deal soon. ABG Shipyard is one of the 12 firms on the Reserve Bank of India (RBI)’s list to be forced into bankruptcy under a new regulation for failing to repay their debts.

India Ports Global has signed a contract with Aria Banader of Iran to equip and operate two terminals at Chabahar - Shahid -Beheshti Port in Iran for transportation of goods and other purposes. "As per Article 6 of the contract, effort are to be made to commence commercial operations at Chabahar –Shahid- Beheshti Port in Iran within 18 months from the contract activation date or 4 months from the date on which the Lessor hands over the Terminals and the infrastructure facilities to the Lessee in accordance with the terms of the Contract," said a press release from the government. India Ports Global Private Limited (IPGPL) is a joint venture between Jawaharlal Nehru Port Trust (JNPT) and Kandla Port Trust (KPT).

The Indian ministry of defence (MoD) has terminated the contracts with India's ABG Shipyard, which already  was out of the race for $2.6-billion four Landing Platforms Docks (LPD). This comes as another serious setback to the Shipyard after it was listed as non-performing asset (NPA) accounts by the Reserve Bank of India (RBI) for fast resolution under the insolvency law. ABG Shipyard has failed the corporate debt restructuring (CDR) carried out by ICICI bank. The Financial Express reported that keeping in mind the poor financial health of the shipyard, the MoD has written to ABG  that their old contracts are terminated. “The MoD through a letter to ABG Shipyard has cancelled contracts including Cadet Training ship; Coast Guard Training Ship and Naval vessels.

Largest Private Sector Shipbuilding Yard in India ABG Shipyard is for sale. The Lenders led by State Bank of India has hired investment bank Rothschild to find a buyer for a majority stake in the company as they struggle to save Rs 16,000 crore ($2.4 billion) worth of loans given to it, reports Economoc Times. Lenders have to complete this exercise -converting debt into equity -within 210 days and find a new buyer within 18 months, according to Reserve Bank of India norms. Earlier, Global commodities platform SIMEC Group bought a 51% stake in ABG Cement for Rs525 crore and initiated a management change in the company earlier this financial year. Meanwhile, Lenders to ABG Shipyard have converted a significant portion of their debt into equity and now own 49.15% in the company.

India’s premier container port, Jawaharlal Nehru Port in Navi Mumbai, has signed an agreement with State Bank of India and Development Bank of Singapore for External Commercial Borrowing (ECBB) to the tune of USD 400 Million at a “very competitive” interest rate to improve the infrastructure required for “doubling” its existing capacity to 9.85 Million TEUs annually. The ECB of USD 400 Million ( USD300 Million from the SBI & USD100 from DBS) will be primarily utilised by the JNPT, which has US Dollar denominated foreign currency earnings which can be leveraged for a low cost foreign currency borrowing, for expansion of its existing roads network connecting to its port project as the existing road network for evacuation of traffic is currently operated at a capacity utilisation of 100%.

Indian Prime Minister Narendra Modi signed a deal to develop the Chabahar port in Iran for which India will extend $500 million. The historic pact makes Chabahar the first foreign port which India is involved in developing to such a large extent. India and Iran, along with Afghanistan, have agreed to develop the southern Iranian port of Chabahar, giving India vital access to Central Asia, as well as highlighting regional rivalries and burgeoning friendships. The main contract on Chahbahar port was supplemented by a contract between the Ex-Im Bank of India and Iran’s Ports and Maritime Organisation with a capital back-up of $150 million for developing the port.

The cash-strapped Indian shipbuilder ABG Shipyard will likely close the deal for a 51 per cent stake sale by the end of this financial year, its managing director and CEO Syed Abdi said. Syed said the company had narrowed it down to one player for the stake sale and was looking to raise about Rs 500 crore for its working capital requirements. ABG Shipyard Ltd was in talks with a clutch of domestic and international investors for selling as much as 51% in the country’s largest shipbuilder. India’s largest private shipbuilder is in the midst of a corporate debt restructuring (CDR) exercise under which the creditors led by State Bank of India agreed last year to recast Rs.11…

Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest port developer and a part of Adani Group, a global integrated player, entered into a strategic partnership with National Collateral Management Services Limited (NCML), a major Agri-infrastructure player, for collateral management and warehousing services. The objective of these services will be to assist industries, traders, Importers and exporters in financing their capital requirements at all stages of the supply chain, ranging from Post harvest storage to export or Import stages. Mr. Sanjay Kaul , MD & Chief Executive Officer, NCML, signed the agreement with Capt Unmesh Abhyankar, Chief Executive Officer (Mundra Port) and Mr. Vipul Shah, Head –Sales and Mktg, Adani Hazari port in presence of Mr.

Mumbai-based shipping firm Varun Shipping Co. Ltd  will be split into two listed entities after the Bombay high court approved a demerger scheme. The Company announced that according to the Composite Scheme of Arrangement and Amalgamation, the Company will be split into two separate listed entities, namely, Varun Global (ship management and shipping investment business) and Varun Resources (shipping business). Both the hived off companies will be independently listed on the stock exchange. Currently these companies are in the process of completing the formality of allotment of shares. As part of the scheme, the debt relating to the shipping business have been transferred to Varun Resources…

The Indian government is planning on raising $2B in overseas funding for major port expansion, the Economic Times of India reported today. The funding will also be used to construct rail and road projects to connect the ports to the country's interior. Indian officials told the Times that the proposal is soon to be finalized, and funds will be used to invest in 12 major ports. Officials also added that the plan will require approval from the Finance Ministry and the Reserve Bank of India.

Bumi Armada Berhad secures syndicated Indian banks term loan facilities of up to US$276.4-million for FPSO 'Armada Sterling'. Malaysia-based international offshore oil and gas services provider, company Bumi Armada Berhad announced today that its jointly controlled entity, Armada D1 Pte. Ltd. (Armada D1) has secured syndicated term loan facilities of up to USD276.4 million (facility) from Allahabad Bank, Bank of Baroda, Bank of India, Indian Bank, Indian Overseas Bank, UCO Bank and Union Bank of India.

According to a Feb. 2 report from the Machinist, a research study by Export-Import Bank of India (Exim Bank) assessed that the shipbuilding industry in the country has the potential to grow at a rate of more than 30%, and this rate of growth could be achieved through supportive measures by the government, including incentives for shipyards. (Source: Machinist)

India’s newest private shipbuilding firm,Pipavav Shipyard Ltd, is the latest in a growing list of firms looking to enter the business of making diesel ship engines in an attempt to meet growing demand for these in India and in other parts of the world, and is talking to two multinational firms for a partnership. Last week, Pipavav Shipyard started work on the first four of 26 Panamax bulk carriers that have been ordered by Norwegian, French and Greek fleetowners for a total of $1.1 billion (Rs4,360 crore). The contract makes Pipavav the world’s second biggest Panamax size shipbuilder by order size after Japan’s dry bulk cargo shipbuilding specialist Oshima Shipbuilding Co. Ltd.

The domestic mutual fund industry has raised only about $400-500m from local investors for offshore investment schemes, indicating that the hike in the overall limit for such schemes by $1b to $5b by the Reserve Bank of India (RBI) was just an enabler for the industry to offer global diversification for investors and there was no pressing requirement, say analysts. The regulations, which also hiked the individual cap on mutual funds to $300m for offshore schemes, have never been a hurdle for the industry, they say. Fund managers have been making a case for diversification, but going by the trend of some recently launched offshore funds, they are not appropriately diversified. Most of the funds have been investing into emerging markets across Asia, where there is concern about volatility.

A multinational shipping firm that has signed a deal to have its ships built at an Indian shipyard, which is still under construction, has already sold the ships, an indication of growing demand for ocean-going vessels. This is the first time such a thing is happening at an Indian shipyard. The yard, Pipavav Shipyard Ltd, is under construction and will not start building ships before February 2008. On 19 March, the Bermuda-based Golden Ocean Group Ltd.—the dry bulk cargo ship operating firm controlled by Norwegian shipping tycoon John Fredriksen—had placed orders with Pipavav Shipyard to build four Panamax bulk carriers, each with a cargo carrying capacity of 75,000 tonnes. The agreed price of each vessel was $35.5m. The company also placed an "optional" order for two more Panamax vessels.