Reduced Appetite Expected for DP World’s $9bn Loan
Appetite for UAE global port operator DP World's $9bn loan financing is expected to weaken due to market turmoil caused by the coronavirus, bankers said.The loan was fully underwritten by Citigroup and Deutsche Bank, and went out to a wider group of DP World’s relationship banks in senior syndication, which closed at the end of last week, one of the bankers said.These banks included Abu Dhabi Commercial Bank, MUFG, Emirates NBD, First Abu Dhabi Bank and HSBC, a second banker said.“Senior…
DP World Returns to Full State Ownership
Dubai is to take full control of port operator DP World in a deal with a $13.9 billion valuation that will help the company at the center of the emirate's 2009 debt crisis to repay some of its borrowings.DP World, which operates ports around the world from Hong Kong to Buenos Aires, will take on $8.1 billion in debt to finance the deal in which Port and Free Zone World, part of state investment vehicle Dubai World, will acquire the 19.55% of Nasdaq Dubai listed shares for $2.7 billion.Port and Free Zone World already owns 80.55% of DP World ordinary share capital.
Ørsted Issues Green Bonds in Taiwan
Ørsted, the largest energy company in Denmark, has secured nominal TWD 12 billion (USD 395m) through the issuance of green senior bonds, to finance its investments in offshore wind in Taiwan. This transaction marks the first ever green TWD bond to be issued by a foreign corporate in Taiwan. The bonds will be issued in accordance with Ørsted’s Green Finance Framework.Ørsted CFO Marianne Wiinholt, said: “We are very pleased with the completion of this historic transaction which is an important step in the financing of the Changhua 1 & 2a project.
DP World to Issue $700 million in Bonds, Sukuk
Port operator DP World plans to raise at least $700 million through conventional and Islamic bond issues on Thursday, documents issued by banks involved in the deal showed.Majority owned by the Dubai government, DP World plans to issue benchmark sukuk with a 10-year maturity. Benchmark bonds are generally meant to be over $500 million.The Islamic paper is being marketed with an initial guidance of around 230 basis points over mid-swaps.Barclays, Citi, Deutsche Bank, Dubai Islamic Bank…
DP World Hires Banks for Dollar Bond Issue
Port operator DP World has hired banks to arrange a series of investor meetings ahead of a potential issue of 10-year U.S. dollar-denominated sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed.DP World, majority owned by the Dubai government, mandated Citi, Dubai Islamic Bank and Standard Chartered to arrange the meetings to be held in Hong Kong, Singapore and London, starting on Wednesday July 10.The three banks, together with Barclays, Deutsche Bank…
Hedge Funds Hunt for Shipping Debt
A growing number of hedge funds are moving into shipping debt, an asset class few have invested in before, looking to buy up loans and bonds as banks cut their exposure to the troubled sector.World economy worries and cost pressures are dampening prospects for a proper recovery in many segments of the shipping sector, which has struggled with tough markets for a decade.Meanwhile European banks, particularly German lenders, are trying to offload distressed and performing loans…
HC2 Holding Mulls Global Marine Sale
The diversified holding company HC2 Holdings announced that it is exploring strategic alternatives, including a potential sale, for its Global Marine Group (GMG) subsidiary.As part of this process, Global Marine Holdings, a leading provider of offshore engineering services to the telecommunications, renewables and oil & gas industries through its operating subsidiary Global Marine Systems Limited, has engaged Deutsche Bank Securities Inc. and ABN AMRO Bank as joint advisors to explore strategic alternatives for the business."Since our acquisition four years ago…
Deutsche Bank Sells $1 Bln Ship Loan Portfolio
Deutsche Bank is selling a $1 billion portfolio of legacy shipping loans to an entity owned by funds managed by Oak Hill Advisors and Varde Partners, it said on Tuesday.Reuters reported last week that the sale of the portfolio was imminent, as the bank draws a line under sour investments in the sector and starts a fresh push in transport lending.Deutsche Bank said it was not exiting ship financing."Following this disposal and other derisking strategies we have implemented, the…
Deutsche Bank Sells $1 Bln Non-performing Ship Loan Portfolio
Deutsche Bank has found a buyer for the bulk of its bad ship loans as it seeks to draw a line under sour investments in the sector and to start a fresh push in transport lending, people close to the matter said.Germany's flagship lender has agreed to sell a non-performing ship loan portfolio with a notional value of $1 billion to investors Oak Hill Advisors and Varde, one of the sources said.Deutsche Bank and Oak Hill declined to comment, while Varde was not immediately available…
HSH Nordbank Aims to Buy Shipping Loans from Other Banks
Germany's HSH Nordbank, once the world's biggest ship financier, aims to buy shipping loans from other banks and make new investments in the industry as it emerges from years of turmoil, a top bank official said.The bank's regional government owners are selling the lender to buyout groups Cerberus Capital Management and J.C. Flowers, with investors GoldenTree, Centaurus Capital and Austrian bank BAWAG also taking stakes."HSH, at the end of this process of privatization, will for the first time since 2008 be restored.
Ceva Logistics Aims for Pre-summer IPO
Ceva Logistics aims to list on the stock exchange before the European summer as its private equity owner Apollo hopes to take advantage of buoyant stock market valuations, people close to the matter said. Apollo is working with Rothschild as advisor and has mandated Morgan Stanley and Credit Suisse to act as global coordinators for the planned initial public offering (IPO), which may value Ceva Logistics at around $3 billion including debt, the sources said. Apollo, Ceva Logistics and the banks declined to comment.
Seaspan Appoints Bing Chen As Chief Executive Officer
Seaspan Corporation announced that Bing Chen will be joining the Company as its Chief Executive Officer (CEO), and appointed to the Board of Directors in January, 2018. Gerry Wang will be retiring as CEO and Director of Seaspan effective November 3. Upon Wang’s retirement, Peter Curtis, executive vice president and chief operating officer, will also serve as Seaspan’s interim chief executive officer until Chen’s arrival, after which he will continue in his current role. David Sokol…
Vitol Returns for $8 Bln Loan Refinancing
Geneva-headquartered energy and commodities trader Vitol has signed an US$8bn loan refinancing of credit facilities agreed in October 2016, the company announced on Wednesday. The revolving credit facility, which is used for working capital and general corporate purposes, comprises a three-year tranche and a 364-day tranche. The three-year tranche totals over US$7bn. ABN AMRO Bank, Commerzbank, Credit Agricole CIB, HSBC Bank and ING Bank were active bookrunners on the transaction.
Proposed New Capital Rules Threaten Shipping
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…
BIMCO Adopts Ship Financing Term Sheet
In a landmark decision, BIMCO cemented its move into the domain of ship financing with the Documentary Committee’s approval of a standard term sheet for use in ship financing transactions on 17 November 2016. BIMCO President Philippe Louis-Dreyfus said, “I am particularly pleased to see BIMCO taking this important step. BIMCO is the world leader in the production of standard contracts and clauses for the maritime industry. It is only natural that its documentary activities also cover ship financing – an issue which has become increasingly important and challenging over the years…
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.
HCI Group Takes Over 13 Feeder Containerships
The HCI Group and two other investors have taken over a total of thirteen ships from the loan portfolio of HSH Nordbank. The HCI Group structured the portfolio acquisition and is investing a substantial amount itself. The portfolio consists of thirteen feeder ships of between 800 and 1,800 TEU, with an average age of nearly ten years. Deutsche Bank AG will be refinancing part of the portfolio. The parties have agreed not to disclose the purchase price for the vessels. In its role as general manager…
Ithaca Energy Completes RBL Redetermination
Ithaca Energy Inc. announced having successfully completed its planned semi-annual reserves based lending (“RBL”) facilities review and continues to maintain in excess of $100 million of funding headroom ahead of planned first hydrocarbons from the Greater Stella Area in the third quarter of 2016. The Company commenced deleveraging the business in 2015 with net debt reducing from a peak of over $800 million in the first half of 2015 to $630 million at 31 March 2016. Following…
Pioneer Marine Posts Loss, Takes New Delivery
Singapore-based dry bulk operator Pioneer Marine posted a loss of $80.6m for the fourth quarter, and a yearly loss of $96.9m for 2015. Excluding the effect of the impairment loss, net loss as adjusted would have been $22.5 million for the year ended December 31, 2015 or $0.87 adjusted loss per share basic and diluted and $6.2 million for the fourth quarter of 2015 or $0.21 adjusted loss per share basic and diluted. Pankaj Khanna, Chief Executive Officer, commented, “2015 proved to be a challenging year for the drybulk industry with excess supply overwhelming anaemic demand growth…
Port Of Hong Kong Volumes Down
Hong Kong port recorded a 16% overall throughput drop in February to 1.2m teu from 1.4m teu in previous corresponding period, accelerating from the 9.6% drop seen in the first month of the year. The container turnover at port since the beginning of 2016 decrease by 12.5% yoy and amounted to 2.86 million TEU. The negative container throughput into the port happened on the background of Chinese economy delay and bad economic environment in the region. Throughput at the main Kwai Tsing terminals was especially hard hit during the holiday-shortened and traditionally slow month…
Poseidon Containers Launches IPO
Poseidon Containers Holdings Corp. announced today the commencement of its initial public offering (IPO) of 15,380,000 common shares. The company said it will grant the underwriters a 30-day option to purchase up to 2,307,000 additional common shares. The estimated price range for the offering is $14 to $16 per common share. The company expects to use the net proceeds of the offering to fund a portion of the contracted purchase price of four containerships that it has agreed to…
Hapag-Lloyd IPO Sooner than Planned
German ocean carrier Hapag-Lloyd aims to launch preparations for an initial public offering (IPO) in September, which is sooner than it originally planned, as a result of strong financial results, says Reuters. Hapag-Lloyd’s solid second quarter financial performance, results of which will be published this month, has given senior management confidence to push ahead with listing plans earlier than planned. The Hamburg-based company has already picked Deutsche Bank, Goldman Sachs and Berenberg to lead the transaction, Reuters reported previously.
Bunker Holding Increases Financing Facilities
Press release - Bunker Holding, a Danish company within bunker trading, has secured a new loan facility. In July, Bunker Holding announced its best result ever with a profit of $91 million before tax and an equity of $295 million, a result which, according to the group’s CEO Keld R. Demant, is achieved by controlled and profitable growth. The future growth is now further supported by a new loan facility which increases the group’s financing facilities by 50 percent, the company said.
Shell Withdraws from Arctic Exploration
Royal Dutch Shell has abandoned its Arctic search for oil after failing to find enough crude in a move that will appease environmental campaigners and shareholders who said its project was too expensive and risky. Shell has spent about $7 billion on exploration in the waters off Alaska so far and said it could take a hit of up to $4.1 billion for pulling out of the Chukchi Sea for the "foreseeable future". The unsuccessful campaign is Shell's second major setback in the Arctic after it interrupted exploration for three years in 2012 when an enormous drilling rig broke free and grounded.
Hapag-Lloyd in US$500 mln IPO
German container carrier Hapag-Lloyd is looking to sell shares for a total US$500 million, and will seek listings in Hamburg and Frankfurt before the end of 2015. Hapag-Lloyd has confirmed that it is preparing for a US500 million initial public offering (IPO) this year, with the expectation that it will use some of the proceeds to order ultra large containerships. "This move will give us better access to the capital markets which will enable us to further invest in our business to become more competitive," Reuter quoted Hapag-Lloyd Chief Executive Rolf Habben Jansen as saying.
Indonesia Plans to Build 22 Ports
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.