Archive for the ‘Offshore Banking’ Category

JPMorgan China Clients Seeking Financing Abroad Rises to Record, Fang Says

By Bloomberg News - Fri Mar 02 04:23:46 GMT 2012

Fang Fang, head of China investment banking at JPMorgan Chase & Co.

Fang Fang, head of China investment banking at JPMorgan Chase & Co. Photographer: Qilai Shen/Bloomberg

March 2 (Bloomberg) -- China's economic challenges are expected to be at the forefront of discussions among the nation's policy makers during the annual meeting of the National Peoples Congress in Beijing next week. Bloomberg Television's Stephen Engle reports. (Source: Bloomberg)

JPMorgan Chase & Co.s (JPM) pipeline of clients from China seeking financing overseas has doubled from a year ago to a record, led by developers seeking funds, said the head of its China investment banking business.

We saw a level of activity that weve never seen in the past by property companies tapping offshore debt markets, Fang Fang, who is also managing director and Asia vice chairman for New York-based JPMorgan, said in an interview yesterday. He declined to provide specific figures. We are seeing the return of the equity investor as well.

JPMorgan, the biggest U.S. lender by assets, is among banks benefiting from a revival in overseas fundraising by Chinas largest developers, who aim to ease a cash crunch as home prices drop and the government maintains curbs on the property market. Last month, JPMorgan was among banks that arranged a $500 million bond sale by China Overseas Land & Investment Ltd. (688)

The U.S. banks ties to China go back to 1911, when it led a syndicate in managing a railway companys $7.5 million bond sale. In 1921, Equitable Eastern Banking Corp., one of JPMorgans predecessor firms, opened a Shanghai branch, according to the lenders website.

JPMorgan began offering investment banking services in China in the middle of last year after tying with First Capital Securities Co. (FISCPZ) as a joint-venture partner in March 2010. That puts it behind rivals such as Goldman Sachs Group Inc. (GS), which in 2004 became the first Wall Street firm to firm to win an underwriting license in China, and Zurich-based UBS AG, which began operations on the mainland in 2006.

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JPMorgan China Clients Seeking Financing Abroad Rises to Record, Fang Says

BW Offshore: New contemplated bond issue

BW Offshore Limitedis contemplating to issue a NOK 500-750millionsenior unsecured bond with maturity inMarch 2017. Theproceeds will be usedfor general corporate purposes.

DNB Markets, Nordea Markets, Pareto Securities and SEB Merchant Banking have been appointed as joint lead managersof the contemplated bond issue.

For further information, please contact:

Knut R. Sthre, CFO, +47 9111 7876

Kristian Flaten, Vice President IR and Corporate Finance, +47 9509 2322

About BW Offshore:

BW Offshore is a leading global provider of floating production services to the oil and gas industry. With the acquisition of Prosafe Production in 2010, the company has become the world`s second largest contractor with a fleet of 14 FPSOsand 2 FSOs represented in all major oil regions world-wide. BW Offshore has an excellent track record on project execution and operations, as well as a robust balance sheet and strong financial capabilities. In30 years of production, BW Offshore has successfully executed more than 30 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. Further information is also available on http://www.bwoffshore.com

The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: BW Offshore via Thomson Reuters ONE HUG#1590559

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BW Offshore: New contemplated bond issue

Banks can only blame themselves

HAVING missed every major financial crisis or corporate collapse in the past 20 years, the three big global ratings agencies seem hell-bent on a mission to prove themselves relevant.

The only problem is that, whereas in the past they failed to spot anything at all, they now appear to be jumping at shadows.

Take the decisions by two of them on Australian banks in recent days.

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On Friday, Fitch downgraded three of the big four banks - it excluded ANZ Banking Group as it already was on the lower rating - because it suddenly discovered Australian banks have borrowed heavily offshore and, apparently, there has been some kind of financial trouble in Europe recently.

That bizarre announcement was followed yesterday by an even more laughable proposition from Standard & Poor's.

It breathlessly announced Australia's banks could well be at risk if China's economy collapses.

I hate to be the bearer of bad tidings. But if China's economy has a ''hard landing'', as the agency postulated, there's certain to be more than just our banks that will suffer. Try our resources companies for starters. Try the global economy for seconds.

Despite all the hype about recovery, the US economy has sputtered to life only after copious doses of fuel from the US Federal Reserve, courtesy of zero interest rates and two massive doses of money printing.

Europe is now in recession, with the European Central Bank also cranking up the printing presses in a desperate effort to keep things ticking over. And in Japan, well, it's been the same old story since it collapsed in the early '90s.

China and emerging Asia are the driving forces for global commerce, the only geographic region showing any sign of life, powering the Australian economy to the greatest export performance in history. It's a somewhat myopic view to suggest that if China collapses, Australian banking could suffer some hard times.

Is it possible the ratings agencies missed the latest round of bank mega earnings?

Could they have overlooked our banks' monopolistic behaviour, their unique ability to be price-makers rather than price-takers when it comes to interest rates? And what about their terrific margins or world-beating returns on equity?

Investors largely took the Fitch banking downgrades in their stride yesterday with little movement in early trading. But the finance sector came under pressure during the session as the general market retreated.

Each of the big four has taken massive steps in reducing the impact of offshore funding. They've dramatically shifted reliance from offshore markets to onshore and they now rely far less on short-term debt than when the financial crisis hit in 2008.

On top of that, Europe finally has begun the long process of reducing the risk of a calamitous break-up. So you'd have to question the logic of downgrading Australian banks at this point. Surely, they faced greater risks three years ago.

It is true that back then, the federal government rode to the rescue, covering the foreign debts of all our financial institutions and insuring their deposits. But it is equally true that, in the event of a similar meltdown, the federal government would again support the banks. So the risk to the banking system now is lower, not higher.

The Reserve Bank governor, Glenn Stevens, also was at a loss to understand the downgrades. Other Australian companies with much greater risk profiles, he told a Senate hearing last week, could borrow offshore at cheaper rates than our banks.

You could argue the RBA governor has a vested interest in maintaining stability and so naturally would bat for the banks. But if you want to compare track records on financial analysis and economic management, Stevens wins by a country mile. And while he may want to eliminate overly negative sentiments, he's certainly not prone to boosterism.

But really, the banks have only themselves to blame. They invited these downgrades with their ridiculous posturing on interest rates.

In the past few months, they've been moaning at length about the enormous costs of borrowing offshore and how the ructions on European wholesale funding markets have walloped their profit margins.

At every opportunity, senior executives at the big four have loudly broadcast how captive they were to offshore funding costs. And their spinmeister, the Australian Bankers Association, has rarely been so busy, detailing the perilous nature of global finance and the abyss into which Australia may soon descend unless they raise interest rates.

They have virtually held up a big red flag to the ratings agencies, all the time screaming: ''Look at us! We are in serious trouble here.''

Guess what fellas. You were heard.

Collectively, they have made a serious error in judgment, not just strategically, but from an operational viewpoint.

The problem facing the banks is not funding costs. It is that demand for new loans has shrunk alarmingly. With lending growth at all-time lows, smashing profit records becomes virtually impossible.

You don't need to be an economics whizz to figure out that if you raise the price of a good or service, demand will shrink.

So by pushing rates higher, by pumping up their margins to maintain the record earnings streak, the big banks have ensured decreased demand for new loans, potentially pushing them into a vicious circle.

Oh yes, let's not forget that those lowered credit ratings will force the banks to pay more to raise cash on international wholesale markets.

Sometimes you need to be careful what you wish for.

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Banks can only blame themselves

Tax on local vessels needs review

KUALA LUMPUR: Owners of Offshore Support Vessels (OSVs) in the oil and gas industry, are urging the Government and local banks to look into tax and financing issues affecting their business.

According to Malaysia OSV Owner's Association president Tasripin Masotee, local vessel owners were facing stiff competition from foreign-owned vessels (including Labuan registered vessels) that were offering lower daily-charter rates by as much as US$1,000 (RM3,015) to US$2,000 (RM6,030) per day.

He emphasised that OSV players were not asking for handouts from the Government.

“We want a level playing field and tools for us to be competitive and market-driven,” said Tasripin in a statement.

He said factors that had led to the “uncompetitive” charter rates offered by Malaysian-owned vessels included unfavorable fiscal and monetary legislation on corporate tax, high operation and maintenance costs in Malaysia due to tax, work permit fees for foreign crews, and comparatively high cost of financing from local banking institutions.

Tasripin cited Singapore as offering a more favourable environment for OSV owners.

“Currently Singapore offers fiscal benefits or tax exemption to OSVs registered in Singapore. Income derived from the operating or chartering of such ships in international waters, enjoy tax exemption.

However, sadly this is not happening in Malaysia, where the tax exemption is only applicable to merchant cargo ships.”

He also pointed out that in Malaysia, imports of ship engine spare parts, equipment, machinery, mooring and anchor wires, anchors and navigational equipment were taxable items.

“In Singapore, these items are exempted from tax.”

Tasripin also said the cost of financing with banks in Malaysia was much higher, compared with offshore foreign banking institutions, by almost 50%.

“For example, Singaporean owners are paying 3%, while Malaysian owners pay between 6% and 7%. The interest rates in Malaysia are not competitive while margin of financing is lower and repayment periods are shorter. There is no way for local OSV owners to expand their fleet until they have settled the loan of the previous vessels.”

The association's membership consists of 17 companies with a combined fleet strength of 198 vessels.

Malaysia OSV members are said to have a combined revenue of more than RM15bil, and assets of RM10bil, with about 12,000 employed marine crews serving on offshore vessels nationwide.

Presently, there are 49 Malaysian-registered companies (including those registered in Labuan) that own and operate OSVs, with vessels having an average age of six years.

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Tax on local vessels needs review

Credit Suisse Private Banking Presents "From David to Goliath: How Entrepreneurs Overcome the Challenges of Company …

NEW YORK, Feb. 28, 2012 /PRNewswire/ -- "From David to Goliath: How Entrepreneurs Overcome the Challenges of Company Growth," a report released today by Credit Suisse and Dr. Helena Yli-Renko, Associate Professor of Entrepreneurship at the Lloyd Greif Center for Entrepreneurial Studies at the University of Southern California, provides an intimate look at the challenges and triumphs of 13 successful entrepreneurs across the US and Latin America. The report highlights these high-growth entrepreneurs and traces the trajectories of their respective companies—which have created jobs, introduced innovations and transformed entire industries. It also examines entrepreneurs' responses to common business issues.

(Logo: http://photos.prnewswire.com/prnh/20091204/CSLOGO )

"At Credit Suisse, we are privileged to serve the wealth management needs of many of the world's leading entrepreneurs and their families," said Bill Woodson, Managing Director and Head of Credit Suisse Private Banking USA's Family Wealth Planning Group. "In 'From David to Goliath: How Entrepreneurs Overcome the Challenges of Company Growth,' we are pleased to shed light on the war stories entrepreneurs share with each other. It is always heartening to hear how they have all overcome so many challenges to create the high-growth, high-impact firms that are the subjects of this white paper."

Findings:
The report categorizes enterprises into two camps: David and Goliaths, depending on their size.
Entrepreneurs, the authors found, have common challenges that they must address: people, financial resources, business networks and environment jolts.

High-growth entrepreneurs have shared approaches to meeting these challenges:

People: The popular conception of entrepreneurs is that they are lone wolves — fiercely independent individuals seeking to forge their own paths. In reality, successful entrepreneurs tend to be collaborative and humble, skilled in communicating their vision and in getting other people to help them. High-growth entrepreneurs are persistent, but not bull-headed. They are highly responsive and adaptive ("There is No 'I' in Team" Principle). Financial Resources:  High-growth entrepreneurs are extremely resourceful when it comes to capitalizing their growth-- often through unconventional means ("Bird in Hand" Principle). Business Networks:  Entrepreneurs' networks are multidimensional—they include friends, family advisors, customers, suppliers and even competitors.  These diverse networks provide checks and balances for entrepreneurs to adjust their personal approach, their business model or both ("It Takes a Village" Principle). Environmental Jolts: High-growth entrepreneurs have a "little engine that could" mindset.  They have little fear of failure. Persistence is their most defining trait. Experienced entrepreneurs excel in turning the unexpected into the profitable ("The Lemonade" Principle).

However, the most surprising finding of this research, according to the authors, is that smaller companies failed to perceive larger, more established companies as threats—but rather as motivating forces.

According to co-author Yli-Renko,  "The key lies in viewing entrepreneurship and company growth as a learning process where entrepreneurs continually hone their ability to make decisions in rapidly changing, uncertain environments. Entrepreneurs should be viewed as problem-solvers and improvisers, making use of whatever resources they have."

The case studies show how founders of fast-growth companies must continually balance and adjust as their companies grow and change. The report features:

Juan Blum, Efficacitas Consulting – Carving out a new market for environmental consulting in Ecuador Andrew Burgert, Nextive –Scaling up an international software company Daniel Davison, OneNews –Creating a model for real-time news reporting Alejandro Diego, Ollin Studios –Scaling and building a reputation as a Latin American visual effects producer Marco Giannini, Dogswell – Managing inventory and continuous innovation: Growing and selling a pet food company Rhonda Kallman, Boston Beer Company and New Century Brewing – Fighting unexpected battles to bring a new beer to the masses Joe Kaplan, Innovative Merchant Solutions –Leading a payments business to acquisition Jim Marggraff, LiveScribe – Launching a ground-breaking consumer technology product Liz McKinley, Pinnacle Petroleum – Learning to delegate while keeping that personal touch Adam Miller, Cornerstone OnDemand – Business model innovation to drive change in the emerging SaaS market Rafael Soares, Yoguland – Creating an overnight sensation: Building a successful frozen yogurt franchise in Brazil Harry Tsao, MeziMedia – Spurring growth with an offshore development initiative Rob Ukropina, Overnite Express – Growing and selling an overnight delivery company

Please click here for a copy of "From David to Goliath: How Entrepreneurs Overcome the Challenges of Company Growth."

Third Annual Entrepreneurs Summit – Sundance, Utah – March 1-2
Private Banking USA will host its third annual Entrepreneurs Summit in Sundance, Utah on March 1-2. This year's Summit will focus on a theme of the new white paper: "Overcoming the Challenges of Growth." It will feature various keynote speakers and experts who have experienced these challenges first-hand. 

The Entrepreneurs Summit is an opportunity for entrepreneurs to learn from one another, to network with like-minded individuals, and to share best practices in an exclusive and intimate environment.

Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 49,700 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at http://www.credit-suisse.com. View our Corporate Responsibility policy and our full Corporate Citizenship Report at http://www.credit-suisse.com/responsibility.

Private Banking
In Private Banking, Credit Suisse provides comprehensive advice and a broad range of wealth management solutions, including pension planning, life insurance products and wealth and inheritance advice, which are tailored to the needs of high-net-worth and ultra-high-net-worth individuals worldwide. In Switzerland Credit Suisse supplies banking products and services to individual clients, corporates and institutions.

Credit Suisse Securities (USA) LLC is an indirect subsidiary of Credit Suisse. The Private Banking USA business in Credit Suisse Securities (USA) LLC is a U.S. regulated broker dealer. It is not a chartered bank, trust company or depository institution. It is not authorized to accept deposits or provide corporate trust services and it is not licensed or regulated by any fe
deral banking authority.

 

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Credit Suisse Private Banking Presents "From David to Goliath: How Entrepreneurs Overcome the Challenges of Company ...