Marine Link
Thursday, June 29, 2017

Cargotec Refinances EUR 300 mln Credit Facility

Photo: Cargotec

Cargotec Corporation entered into an EUR 300 million multicurrency revolving credit facility with a syndicate of its six relationship banks on 26th June. The facility carries a tenor of five years including two one-year extension options. The purpose of this facility is to refinance the existing EUR 300 million multicurrency revolving credit facility, maturing in January 2019. With this facility, Cargotec strengthens its long-term liquidity and takes advantage of the favourable market conditions.

Lenders Ramp up Pressure on 'Toxic' Shipping Debt

Financiers are set to take a tougher stance towards distressed shipping loans including more enforcement action to recoup funds, while capital on offer to the industry is expected to shrink further, a leading transport survey showed on Wednesday. The global shipping sector is reeling from a near-decade-long downturn, which has seen companies collapse and banks scale back exposure or exit entirely from providing finance. While there are signs of returning confidence in shipping, as players eye better prospects and the worst of the recession abates, the industry faces a financing black hole estimated at $30 billion this year. In an annual survey by international law firm Norton Rose Fulbright…

Maersk Says It's Been Cyber Attacked

File photo: Maersk Line

Shipping giant A.P. Moller-Maersk, which handles one out of seven containers shipped globally, said the Petya cyber attack had caused outages at its computer systems across the world on Tuesday. The attack came as computer servers across Europe and in India were hit by a major ransomware attack. "Global cyber-attack Petya is affecting multiple businesses," Maersk said on Twitter. The breakdown affected all business units at Maersk, including container shipping, port and tug boat operations, oil and gas production, drilling services, and oil tankers, the company said.

Woes Mount for ABG Shipyard

Photo: ABG Shipyard

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…

Noble Group Gets Debt Lifeline

Photo: Noble Group

The striggling commodities giant Noble Group has secured a 120-day extension for its USD 400 million credit facility from June 20, 2017. According to Reuters, Noble Group, has over 100 vessels on charter, confirmed that its lenders had agreed to push back a repayment deadline by four months and said it continued to be in talks with potential investors about the sale of an interest in the company or parts of its business. The company had persuaded banks to extend the $2 billion credit line…

India's Largest Box Port Hit by Cyber Attack

File Image: CREDIT Trelleborg

Operations at one of three terminals at India's largest container port JNPT, near the commercial hub of Mumbai, have been disrupted by the global ransomware attack, the port said on Wednesday. The affected terminal is operated by Danish shipping giant AP Moller-Maersk, which said on Tuesday that the cyber attack had caused outages in its computer systems globally. Clients were notified on Wednesday morning that vessel operations at the terminal would be hit and that the company could not say when normal services would resume, according to one shipping industry source.

Study Assesses Hurricane Impacts Coral Reefs

The Department of the Interior’s Minerals Management Service (MMS) recently concluded a study that gives new insight into the effects Hurricane Rita had on the Gulf of Mexico’s important coral reefs and banks in and around the Flower Garden Banks National Marine Sanctuary. The $357,000 study, entitled Post-Hurricane Assessment of Sensitive Habitats of the Flower Garden Banks Vicinity, provided an understanding of hurricane impacts, characterized the condition of the banks, and created a baseline for future assessment. “Protecting marine resources is an important part of the MMS mission and it’s essential for MMS to identify and assess any damage to these valuable habitats,” said MMS Director Liz Birnbaum.

Bank of Ireland Winding Down Shipping Loans

Bank of Ireland said it is winding down its shipping business, joining other banks looking to cut non-core lending and exposure to an industry suffering its worst downturn. Many European banks are already bogged down by a sluggish economy and face tough capital demands from regulators which are eroding profitability, leaving many looking for ways to shore up their balance sheets. Parts of the shipping industry are suffering their deepest ever downturn as international trade slows. Around 90 percent of world trade is transported by sea. "As previously stated, Bank of Ireland no longer lends within the shipping finance sector and we have been winding down the portfolio," the bank, Ireland's largest by assets, told Reuters on Tuesday.

Hellenic Ship Finances Look Up

Photo Credit: Iolcos Hellenic Maritime Enterprises

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.

Greek Banks Mull Cutting Shipping Portfolios

Greece's leading banks are considering offloading part of their portfolios of shipping debt worth billions of dollars in a bid to shore up their capital, according to banking and ship financing sources. Greece has secured an extension to its bailout from its European partners, but the danger of it unravelling and of Greece being pushed out of the euro zone still exists, raising the risk that Greek banks could face large deposit losses in the future to add to those they have already had. "There are several portfolios being shopped around at the moment, including shipping loans," one banking source said. The banker and a ship-finance source said such debt could be attractive for private equity players who have been scooping up distressed assets in shipping due to the sector downturn.

Cyprus Financial Crisis: Effect on Shipping Interests

Cypriot Transport Minister, Tasos Mitsopoulos, states the nation's shipping registry will not be affected by turmoil in banking sector. The Minister downplayed the impact of Cyprus's banking crisis on the local shipping industry, pointing out that none of the island's banks are active in ship financing, reports Tax-News. Despite Mitsopoulos's assurances, many shipping companies' bank deposits in Cyprus are expected to be heavily impacted by the banking sector developments, and could see losses topping 40% on amounts over EUR100,000, alongside the imposition of capital controls, which may restrict the companies' business activities. Source: Tax-News    

Minoan Lines To Sign Loan

Ferry operator Minoan Lines will sign a $253.5 million syndicated loan jointly arranged by Citibank and National Bank of Greece to finance four highspeed ferries under construction, according to officials. Participating in the syndicated loan are Bayerische Hypo und Vereinsbank, Commercial Bank of Greece, Deutsche Schiffsbank, Landesbank Schleswig-Holstein Girozentrale, Alpha Credit Bank, BNP, Commerzbank, Meespierson, Schiffhypothekenbank zu Luebeck, Nedship Bank, ABN AMRO Bank and Efibanca.

EX-IM Bank, Marad Agreement to Facilitate Shipping

The Export-Import Bank of the United States (Ex-Im Bank) and the Maritime Administration (MARAD) signed a memorandum of understanding to establish a program to provide Ex-Im Bank-guaranteed working capital loans for shipping, logistics and other companies involved in ocean freight transportation. The agreement also updates certain shipping requirements for Ex-Im Bank transactions. Under the agreement, Ex-Im Bank can provide working capital loans to export service providers, enabling them to extend credit terms to their export clients. The Bank will also increase its working capital guarantee from 90 percent to 95 percent for U.S. companies that ship on U.S. flag vessels. Ex-Im Bank and MARAD also agreed to raise the minimum threshold for Ex-Im Bank-guaranteed U.S.

KfW uses Eurofin to target Greek owners

Eurofin to act as its consultant. clients and identifying ship financing opportunities for the bank. Dr. clients. stronger than it has ever been. good banks such as KfW IPEX-Bank have to be selective. finance, and short-term trade finance. scale. refinancing at market rates at all times.

Wisdom Marine Takes Loan for Japanese Orders

Wisdom Marine Group signed a two-tranche syndicated loan agreement for $5.92 million (USD) and ¥11.88 billion ($119.43 million, USD) with six domestic banks to finance its orders with three Japanese shipbuilders, Taipei Times reported. The syndicated loan was co-led by First Commercial Bank and Bank of Taiwan, with participating loans from Taiwan Cooperative Bank, Hua Nan Commercial Bank, Bank SinoPac and Bank of Kaohsiung. Wisdom Marine and its subsidiaries placed orders with three Japanese shipbuilders Oshima Shipbuilding Co Ltd, Sasebo Heavy Industries Co Ltd and Tsuneishi Shipbuilding Co Ltd to build six bulk vessels. Delivery is anticipated sometime between this year and 2015.

Merchant Bank Invests in New BWTS Project

Photo courtesy of Capital Corp Merchant Banking

Capital Corp Merchant Banking, a U.S.-based merchant banking group, say they have been working on an environmentally friendly ballast water treatment system (BWTS) project with a client and have entered into USD $41-million funding agreement with them. This patent-pending project makes better, more energy-efficient use of existing ballast water treatment technologies, resulting in a smaller energy footprint of the system and decreasing the ship's power-capacity needs. The funding structure Capital Corp Merchant Banking has devised consists of providing its client with $19M in common stock…

Indonesia Plans to Build 22 Ports

Image: PT. Pelabuhan Indonesia II

Indonesia Port Corporations (IPC) or PT Pelabuhan Indonesia (Pelindo) II, Indonesia’s state-owned port operator is to build 22 ports in the country in the next five years for an anticipated cost of around $3.5 billion. “We are targeting to build 22 ports from Belawan to Sorong within five years,” Pelindo II chief executive Richard Joost Lino said. The Indonesian port projects are to be financed by cash and loans and once completed each will have a capacity of 2.5 million TEUs.

ECB Reviews Shipping Loans

Image: European Central Bank

European Central Bank (ECB) kicked off a review into the risks of banks’ shipping exposure, Reuters reported. ECB is conducting an in-depth review of banks’ exposure in shipping amid rising provisions for bad debt in an industry still mired in crisis. The ECB’s banking supervisor sent an email at the end of last week asking a raft of European banks for details of their shipping loans and the status of their loan loss provisions as an “initial step” in a broader review of lending in the sector, one of the sources quoted the email as saying.

UASC Signs Credit Facility for Two Containership Newbuildings

Principals at signing ceremony: Image UASC

United Arab Shipping Company S.A.G. (UASC) informs it has concluded a bilateral facility worth USD 190 million with Burgan Bank’s Corporate Banking Group to finance the acquisition of two 14,000 TEU vessels from among UASC's new building order of 17 vessels comprised of eleven 14,000 TEU vessels and six 18,000 TEU vessels. UASC explains it has ordered these ultra large container ships from Hyundai Heavy Industries Co. Ltd. shipyard in South Korea. The giant box-ships, which are state of the art vessels capable of running on conventional fuel and liquefied natural gas…

Turkey to Rehabilitate Bank for Maritime Sector

Turkish deputy Prime Minister Mesut Yilmaz said one of the eight troubled banks controlled by a central bank fund would be rehabilitated to provide financing for the maritime sector. Turkey's central bank last year seized eight commercial banks, whose 1999 losses approached $4.7 billion, and is weighing plans for rehabilitating and possibly selling them. Turkey promised the International Monetary Fund (IMF) it would decide on a plan for dealing with the banks this month, after receiving a $295 million installment of its $4 billion loan backing a disinflation program in July. Turkey has hired consulting firms to draw up a strategy for resolving the banks' bad loan portfolios and advise on restructuring them with an eye toward eventual sale.

As Korean Shipyards Founder, Central Bank Dragged into Rescue Bid

They are South Korea's "too-big-to-fail" firms - the world's largest shipbuilders that are both a massive economic force and an important national symbol - and the government wants the central bank to fund an unconventional rescue of the sector. The three biggest shipbuilders - Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries Co Ltd and Samsung Heavy Industries Co Ltd - sustained record losses last year, dragged down by the global commodities plunge and falling trade volumes. The government wants the central bank to print money to buy bonds in two state banks propping up shipyards as well as shippers - a measure some officials call quantitative easing. Publicly, the Bank of Korea (BOK) says it is willing to cooperate.

Proposed New Capital Rules Threaten Shipping

© Petr Jilek / Adobe Stock

The global shipping industry will hit a credit crunch if proposed new bank capital rules are implemented in a sector already weighed down by toxic debt, bankers involved say. The Basel Committee of banking supervisors from nearly 30 countries met in Chile last month in an effort to complete the new rules for lenders in the world's major financial centres. It is now trying to pin down the details. While the rules do not target shipping specifically, some of the biggest rises in…

Euronav Secures Loan for VLCC Refinancing

Photo courtesy Euronav NV

Tanker shipping company Euronav NV announced it has signed a new $410 million senior secured amortizing revolving credit facility. The facility has been made available on December 16, 2016 for the purpose of refinancing 11 vessels as well as Euronav’s general corporate and working capital purposes. The credit facility was used to refinance the $500 million senior secured credit facility dated March 25, 2014 and will mature on January 31, 2023 carrying a rate of LIBOR plus a margin of 2.25 percent.

Maritime Reporter Magazine Cover Jun 2017 - The Annual World Yearbook

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