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Friday, May 22, 2009

JP Morgan targets Asian investors for new $750m shipping fund

Mumbai: JP Morgan Asset Management has revealed that it plans to raise $750m primarily from institutional investors in India and other Asian countries under a sector-focused fund targeting investments in shipping industry, writes the Economic Times.
This new fund will further bolster the company’s shipping portfolio following JP Morgan Chase & Co’s recent decision to increase its H shareholding in China Shipping Container Lines Co Ltd (CSCL) to 10.07% from the previous 9.85%.
According to local sources, the new the fund may target both distressed assets in the recession-wrecked shipping industry as well as support shipping companies in their expansion plans.
The investments will be focused on dry bulk carriers, oil tankers and container ships and offshore vessels. The strategy is to buy lower-priced shipping assets (ships, tankers and dry bulk carriers) and lease it to companies that need marine transport infrastructure.
Indian shipping companies are looking to raise around Rs 94,000 crore over the next four years to meet various operational needs, including replacing ageing fleet and expanding operational network. Although the global recessionary conditions have impacted the overall shipping industry, it has not led to any severe dent for Indian cargo shipping business.  [21/05/09]