Finance Market News

South African freight and logistics company Grindrod signed an agreement to sell its 20.3% stake in grain services provider NWK to NWK Holdings for R204-million (USD 14 million).According to the press release, the sale is subject to the fulfillment of conditions precedent which is expected to be concluded by the end of the last quarter of 2019.During August 2019, Grindrod announced as part of its strategic review process, its intention to dispose of certain non-core businesses which included its agricultural investments in NWK and Senwes.Said Andrew Waller, CEO Grindrod Limited: “As was communicated at the interim results announcement…

As the global cruise industry enjoys it most robust period of growth ever, the question invariably becomes: How long can it last?Cruising, which is a blend of the hospitality and maritime businesses, continues to grow at a historic pace. The Cruise Trends & Industry Outlook publication from Cruise Lines International Association (CLIA) projects a passenger count of 30 million in 2019 – up nearly 2 million from the previous year. By year end 2019 CLIA members – a veritable ‘who’s who’ of the largest brands – will have 272 vessels…

China earns cruise newbuild business, aims for ship financeWhile China has steadily built shipbuilding market share, cruise ship construction –  more specifically mastering the logistical complexities inherent in cruise ship design, outfit and construction – has proved elusive. But it appears that Chinese shipbuilders have turned the corner, with contracts signed for the first cruise newbuilds. We were in Tianjin, China, earlier this year for the 4th Annual China Maritime Finance Forum for a look behind the covers of passenger vessel in China…

Last week in Tianjin, China, the Intercontinental Tianjinyujiapu Hotel & Residences played host to The 4th China Maritime Finance (DFTP) Summit, a two-day event which saw nearly 800 delegates from across China gather for discussions on all matters maritime finance, including day one, Wednesday, April 25, dedicated exclusively to the growth and future for China’s cruise industry. As the exclusive international media outside of China to cover the event, Maritime Reporter & Engineering…

Global shipping confidence is at an all-time low as fears of a global recession and Britain's vote to leave the EU pile pressure on parts of the industry already suffering from its worst downturn, a leading transport survey showed on Wednesday. The global container sector, which transports everything from bananas to iPhones, as well as the dry bulk shipping market hauling commodities including iron ore and coal, are struggling with a glut of ships, a faltering global economy and weaker consumer demand.

United Arab Shipping Company (UASC) announced  the recent conclusion of a series of transactions that resulted in the issuance by a U.S. based trust of $162 million of Enhanced Maritime Trust Certificates (EMTC). The EMTCs were issued in an offering pursuant to Section 4(a)(2) and Regulation S under the U.S. Securities Act, and the transaction marks UASC’s debut financing in the debt capital markets. The EMTCs received a (private) Investment Grade rating by Fitch Ratings Ltd and Kroll Bond Rating Agency and the proceeds were ultimately used to finance the debt portion of two 2012-built 13…

The Singapore Shipping Association (SSA) has unveiled a slew of plans to boost the prospects of its members amid tough global industry conditions, reports The Straits Times. The key initiatives include building up the finance capability of shipping firms here by promoting more stock exchange listings, opening up access to capital markets and creating greater investor awareness. The Government can do more by expanding Singapore’s tax treaty network, council members of the SSA said. Despite Singapore being a major shipping hub, its 76 Avoidance of Double Taxation Agreements (DTAs) pale in comparison to the estimated 130 that other shipping nations, such as Norway and the United Kingdom, each have.

The overall Greek loans of Hellenic maritime companies and ship owners (drawn and committed but undrawn) rose to $64.019 billion by the end of 2014, 4.1% higher than the $61.498 billion of 2013. Petrofin Research in its latest annual research says that drawn loans are up by 2.85% and Commitments by 18.11%, the latter prompted by the high Greek newbuilding orders. Of the 5 Greek banks active in the shipping finance market, National Bank of Greece shows an increase by 7.33% and Aegean Baltic by 11.99%. The rest show minor decreases. Overall, Greek banks’ exposure is up by 3.17% to a total of $10,8 billion, reflecting the increased stability in 2014 for Greek banks. This increase is the first sign of a recovery, since 2008.

The Liberian Registry says the entry of private equity funding into the ship finance market is helping to sustain its continued growth. Scott Bergeron, CEO of the Liberian International Ship & Corporate Registry (LISCR), the U.S.-based manager of the Liberian registry, said, “Owners are ordering ships again, and there is a great deal of private equity funding entering the market, in the U.S. and elsewhere, which is filling the shortfall created by a reduction in traditional bank finance for shipping.

An experienced team of shipping, offshore and finance professionals are pleased to announce the intention to establish Maritime & Merchant Bank (M&M) a niche financial institution dedicated to meeting the funding needs of owners active in the shipping and offshore industries, worldwide. The newly formed project company, Maritime & Merchant AS (M&M AS), will file a banking license application on behalf of M&M during the autumn of 2013. The main sponsoring shareholders of M&M AS are currently Arne Blystad…

Overall confidence levels in the shipping industry fell in the three months ended August 2012 to their lowest level for a year, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens. The fall, to the lowest figure recorded since the survey was launched in May 2008, comes after three successive quarters of improved confidence. Chief among the concerns raised by respondents to the survey were the glut of newbuildings coming onto the market and continuing uncertainty about the global economy.

Shipowners are known for having distinct differences of opinion, but the one thing that all agree on is the importance of having access to capital. In an industry in which assets are generally big-ticket items and operating margins can be thin, access to proper financing serves the dual purposes of fleet growing the generation of healthy operating returns. Most shipowners would also agree that financing for maritime assets generally isn't easy to find. There are various reasons for this. One reason is that few lenders focus exclusively on marine finance and a result most lending institutions are not familiar enough with marine assets to feel comfortable financing them.

According to a Bloomberg report, Sumitomo Mitsui Financial Group Inc. will double its overseas banking staff that works on financing for ship construction, as Japan's biggest arranger of such deals tries to take advantage of surging demand for vessels. China's appetite for iron ore will boost demand for vessels with cargo capacity of more than 100,000 tons by 44 percent between last year and 2010, according to a report last month by Mitsui O.S.K. Lines Ltd., owner of the world's largest merchant fleet. Corporate lending at Japan's biggest banks contracted 0.7 percent from a year earlier in September, the sixth straight month of declines, a Bank of Japan report showed last month. Sumitomo Mitsui lent $2.7b for ship construction in 2006, according to the U.S. magazine Marine Money.

Qatar Gas Transportation (Nakilat) is considering tapping the Islamic finance market as part of plans to raise $2.5b early next year to pay for tankers, Reuters said. The company has ordered 54 tankers to cope with growing global demand for its gas. Nakilat considered borrowing in accordance Islamic law when it raised $4.3 billion in December but decided instead to use a mix of conventional bonds, loans and export credits. The company sold $1.15b of bonds maturing in 2033 to help pay for 16 tankers built by South Korea's Daewoo Shipbuilding & Marine Engineering, Samsung Heavy Industries Co. and Hyundai Heavy Industries Co., the world's biggest shipbuilder.