Banking News

31 Mar 2020

Outlook for India's Ship-breaking Turns Negative

© Joseph Myerscough / Adobe Stock

The outlook for India's ship-breaking industry has turned negative amid volatile scrap prices and a falling rupee, says ICRA.The country's ship-breaking activity, while tepid during CY2019 due to subdued demand and depressed scrap prices, gathered momentum at the start of CY2020 following the implementation of the International Maritime Organization (IMO) sulphur cap regulations from January 2020. But weakness in the international shipping markets further aggravated by the coronavirus has since dampened sentiments.

26 Mar 2020

Meatpacker JBS Flags Export Logistics Issues Amid Coronavirus

© Grispb / Adobe Stock

Brazil's JBS SA, the world's largest meatpacker, has identified potential logistics issues amid the coronavirus crisis including container shortages and port disruptions, according to executives discussing earnings results on Thursday.JBS executives said in a call on fourth-quarter earnings results that its export operations had not been hit by any disruptions, such as those that have affected frozen container cargos arriving in China in recent weeks. They said the company is banking on its long-term relationships with shipping providers to keep exports flowing.

13 Mar 2020

Japanese Wind Fans Bank Interest

Domestic and international lenders are vying for a slice of Japan’s nascent offshore wind power sector, which is expected to provide as much as ¥3trn (US$29bn) in project financing opportunities, albeit at very low margins.Akita Offshore Wind completed the nation’s first fundraising for a major offshore wind project last month, raising ¥80bn to build wind turbines near two ports in western Japan.Auctions for sites off Japan's shores are due to kick off in April, and lenders are…

10 Mar 2020

DCSA Releases Cyber-Security Guide

Image: DCSA

The Digital Container Shipping Association (DCSA), a non-profit group of nine major ocean freight carriers, has rolled out its cyber security guidance to prepare shipowners and vessels for the International Maritime Organization’s pending cyber security mandate.The best practices outlined by DCSA provide all shipping companies with a common language and a manageable, task-based approach for meeting the IMO’s January 2021 implementation timeframe, DCSA said in a statement.IMO’s…

10 Mar 2020

Golar LNG Appoints New CFO

© Eugene Sergeev / Adobe Stock

Golar LNG said on Tuesday it has appointed Callum Mitchell-Thomson as its new Chief Financial Officer, effective April 20.In October 2019, Golar LNG announced its current CFO, Graham Robjohns, would step down. Robjohns will remain in his current position until April 20, 2020 and will leave Golar on April 30, 2020.Robjohns' successor, Mitchell-Thomson, has 21 years of experience advising energy, utility and infrastructure companies on M&A and capital markets transactions while working for JP Morgan.

23 Feb 2020

Global shipping Hit by Coronavirus

Graph: BIMCO

Global shipping holds its breath as the coronavirus continues to spread and generates massive economic and financial uncertainty.Two weeks ago, BIMCO argued that – from an economic perspective - when China sneezes, we all catch the flu. Since the SARS outbreak in 2003, the global economy has become much more interlinked with China and the Chinese economy has grown to become the second largest in the world.While hard facts and reliable data are in high demand, they are in short supply…

21 Feb 2020

Branson: Virgin Cruise Line Will Overcome Coronavirus Fears

Photo courtesy of Virgin Voyages

British entrepreneur Richard Branson heralded his first cruise ship "Scarlet Lady" on Friday as targeting a younger generation of holidaymakers with a range of attractions that he believes will outweigh any fears around coronavirus.Despite the unfortunate timing, with passengers on one ship quarantined in Japan after hundreds caught the virus and another turned away by five countries over fears someone on board may be ill, Branson sees cruises as a growth area.In an event at Dover…

18 Feb 2020

EU Clears OLT Takeover by SNAM and FSI

Image: OLT Offshore LNG Toscana

The European Commission has approved the acquisition of OLT Offshore LNG Toscana by SNAM and the UK’s First State Investments International (FSI), under the EU merger regulation.According to the Commission, OLT is active in the management of a floating storage and regasification unit for liquefied natural gas in Italy.SNAM is the holding company of the Snam group, which is active in the development and integrated management of gas infrastructures and, in particular, in the transmission…

16 Feb 2020

BPER Banca Finances Marittima Emiliana

Image:  Watson Farley & Williams

BPER Banca SpA has completed a naval financing for ME Marittima Emiliana SpA to a second-hand tanker built by the Chinese shipyard in Guangzhou in 2012.The tanker, originally flying under a Bahamian flag, has been renamed “Lady Rina” and is currently flying under an Italian flag. M.E. Marittima Emiliana, part of the Amoretti Armatori Group, provides transportation service of petroleum and chemical products.Watson Farley & Williams and the Mordiglia law firm of Genoa represented…

03 Feb 2020

International Seaways Signs Refi Deal

Image by International Seaways, Inc.

New York-headquartered product tanker company International Seaways has closed on senior secured credit facilities worth a total of USD 390 million.The crude oil and petroleum product tanker company said that the facilities consists of a 5-year USD 300 million senior secured term loan facility, a 5-year USD 40 million revolving credit facility, of which USD 20 million has been drawn, and a 2.5-year USD 50 million senior secured term loan credit facility.The NYSE-listed ship owner…

23 Jan 2020

Nestlehutt tapped to lead SCI

Photo: Seamen’s Church Institute of New York & New Jersey (SCI)

The Seamen’s Church Institute of New York & New Jersey (SCI) selected Rev. Mark S. Nestlehutt as its new President & Executive Director, succeeding the Rev. David Rider, effective February 18, 2020.With more than two decades of church experience in Massachusetts, Illinois, Maryland, Australia and South Africa, Mark joins SCI from Washington Memorial Chapel in Valley Forge, Pennsylvania where he serves as Rector. His previous employment and interests include service as an officer in the U.S.

22 Jan 2020

Chembulk Tankers Announces Leadership Changes

Bart B. Kelleher has taken over as CEO of Chembulk Tankers (Photo: Chembulk Tankers)

Chembulk Tankers announced on Wednseday that Bart B. Kelleher has taken over as Chief Executive Officer for David Ellis, who has resigned for personal reasons. Ellis will be available to the company through January 31, 2020.Kelleher has held senior executive roles within Chembulk since joining the company in early 2016, initially as Chief Strategy Officer and then Chief Financial Officer in early 2019. Prior to joining Chembulk, Kelleher was the Chief Operating Officer for Principal Maritime Management and held roles in investment banking…

23 Dec 2019

Bourbon Assets Taken Over by Creditor Banks

File image of a Bourbon offshore support vessel underway. CREDIT: Bourbon

French marine services group Bourbon Corporation, which has been in a court restructuring process after its business was hit by volatile energy markets, said its assets would be taken over by its creditor banks.Bourbon said the Marseille commercial court had ruled that Bourbon's assets would be transferred to Société Phocéenne de Participations (SPP) from Jan. 2, 2020.SPP is owned by BNP Paribas, Caisse Régionale de Crédit Agricole Mutuel Alpes Provence, Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile de France…

15 Nov 2019

Sovcomflot Profits Up on Stronger Tanker Market

Pic: PAO Sovcomflot

Russia's state-owned tanker carrier Sovcomflot (SCF Group) reported improvements on both the top and bottom line in the third quarter benefiting from a stronger tanker market.The energy shipping company posted a net profit of  $26m as revenue increased in the third quarter.Sergey Frank, Chairman of the Board of Directors of PAO Sovcomflot, said: “We are satisfied with the Group’s performance over the third quarter. Sovcomflot steadily follows through on its strategy of increasing the share of large-scale industrial shipping projects in its portfolio."He added: "During the reporting period…

10 Nov 2019

Maritime Leaders Calls for Collaborative Spirit

(Left to Right): Tien Tai, HFW; Capt. S.R. Patnaik, International Shipping & Logistics; Zhang Wei, Industrial and Commercial Bank of China Limited (ICBC); Bobby Varghese, Abu Dhabi Port; Chris Peters, Emirates Ship Investment Company LLC; Martin Aarup, Abu Dhabi Ports; Clive Woodbridge, The Maritime Standard; Trevor Pereira, The Maritime Standard; Capt. Mohamed Juma Al Shamisi, Abu Dhabi Port; H.E. Eng. Ahmed M. Shareef Alkhoori, Federal Transport Authority-Land & Marine; Capt. Abdulkareem Al Ma

The fifth annual Maritime Standard Ship Finance and Trade Conference highlighted the importance of the shipping, ports and other maritime sectors working more closely with the financial services sector, as well as the growing influence of green issues and digitalization.The tone was set by the keynote speaker, Ahmed Shareef Alkhoori, Director General, Federal Transport - Land & Maritime. He said: “Financial institutions have a key role to play in helping to unlock the barriers that can exist to the development of maritime businesses.

22 Oct 2019

WFW Advises on Race Bank Wind Farm Deal

Image: WFW

Watson Farley & Williams (WFW), an international law firm based in London, said that it has advised Race Bank Wind Farm Limited on its USD 608 million sale of transmission system assets relating to the 573 MW Race Bank offshore wind farm to Diamond Transmission Partners.Race Bank is a joint venture owned by Ørsted (50%), Macquarie European Infrastructure Fund 5 (25%), a fund established by Sumitomo Corporation, Sumitomo Mitsui Banking Corporation and Development Bank of Japan (12.5%)…

09 Oct 2019

Austal, Cerberus Mull JV on Hanjin's Philippine Yard

AdobeStock / © Bernell11

Australian shipbuilder Austal Ltd and U.S. private equity firm are considering a joint bid for a strategically located but debt-laden Philippine shipyard, the facility's trustee said on Wednesday.Hanjin Philippines, a unit of South Korea's Hanjin Heavy Industries & Construction Co Ltd, in January defaulted on $1.3 billion in loans, of which $900 million is owed to South Korean banks and the rest to five Philippine lenders.Austal and Cerberus are interested in the distressed shipyard…

19 Sep 2019

Siemens Gamesa Ups 'Green' Credit to $1.4Bln

Pic: Siemens Gamesa

Wind turbine manufacturer Siemens Gamesa Renewable Energy (SGRE) has increased the amount of guarantees that qualify as "green" to €1.25 billion ($1.4Bln) as they contribute to the United Nations Sustainable Development Goals (SDG).The deal, arranged with BNP Paribas, adds €350 million to the existing line of €900 million in "green" guarantees arranged with other banks.Siemens Gamesa will use this line to fund its business of manufacturing and selling onshore and offshore wind turbines worldwide…

17 Sep 2019

The Poseidon Principles: De-carbonizing Global Shipping

The Poseidon Principles have been established by the Global Maritime Forum and major financial institutions as a framework within which maritime industry stakeholders will work to reduce carbon emissions.

(Photo © Adobe Stock / Paul Vinten)

The Global Maritime Forum, banking institutions and other maritime industry stakeholders have developed the Poseidon Principles, a global agreement among financial institutions with the aim of decarbonizing shipping. Named after the Greek God of the sea, the Poseidon Principles aim to reduce carbon emissions by aligning financial institutions’ shipping portfolios with (IMO target of a 50 percent reduction in emissions by 2050. The global framework will establish a common way of assessing and disclosing whether a bank’s lending portfolio is compatible with broader climate goals.Søren Toft…

13 Sep 2019

Sovcomflot, NYK Pact on Financing 2 LNG Carriers

Photo: Sovcomflot

Russian maritime shipping company specializing in petroleum and LNG shipping Sovcomflot (SCF Group) and NYK Line have announced that they have signed a new $176 million non-recourse credit facility for eight years with three leading international banks.The banks are: Sumitomo Mitsui Banking Corp. of Japan (through its German subsidiary, SMBC Bank EU AG); Société Générale of France; and Shinsei Bank of Japan. The agreement was reportedly signed through joint venture companies belonging…

22 Aug 2019

'Green' Focus for Citigroup's Shipping Finance Chair

AdobeStock / (c) 14KT Gold

Citigroup's veteran shipping finance banker Michael Parker is to become chairman of the bank's shipping & logistics business, a role which will include bolstering the lender's environmental focus in the sector, Citi said on Thursday.In June, Citi was among a group of leading banks who signed up to environmental commitments known as the "Poseidon Principles."These will for the first time integrate efforts to cut CO2 emissions into banks' decision making when providing loans to shipping companies.The initiative highlights how businesses are having to respond to moves by investors around the worl

21 Aug 2019

Gulf Marine CEO Quits in wake of Profit Warning

A Gulf Marine Services Jack Up unit (CREDIT: GMS)

Gulf Marine Services said on Wednesday Chief Executive Officer Duncan Anderson has resigned as the oilfield industry contractor warned a reassessment of its ships and contracts showed profit would fall this year, kicking its shares 12% down.The Abu Dhabi-based offshore services specialist said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core earnings of between $45 million and $48 million…

21 Aug 2019

Vista Shipping to Finance Product Tankers

Image: KfW IPEX-Bank

Hafnia Tankers, a member of BW Group, and shipyard-affiliated leasing company CSSC (Hong Kong) Shipping have formed a joint venture named Vista Shipping to finance and operate product tankers.A term loan facility of USD 111 million is intended to be used to finance four LR1 newbuildings. A banking consortium consisting of KfW IPEX-Bank, Societe Generale Hong Kong Branch and OCBC Singapore participate with 33% each as lenders at the term loan facility and have reached financial close.KfW IPEX-Bank acts as Facility Agent, Sinosure Agent and Security Agent.

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