A subsidiary of COSCO Shipping Development has signed a sale-and-leaseback agreement for a massive LNG carrier with Japan’s MOL, valued at CNY 2.58 billion, to expand its asset scale and secure stable long-term income.
A subsidiary of COSCO Shipping Development has officially entered into a significant sale-and-leaseback financing agreement for a 271,000 m3 capacity liquefied natural gas (LNG) carrier with a wholly-owned subsidiary of the leading Japanese maritime group, Mitsui O.S.K. Lines (MOL).
The agreement was signed yesterday, August 26, by Oriental Fleet, a wholly-owned subsidiary of COSCO Shipping Development. Under the terms, Oriental Fleet will acquire the LNG carrier from the MOL subsidiary for approximately CNY 2.58 billion (equivalent to USD 356 million). The vessel is expected to be delivered around July 2029.
Immediately upon delivery, the vessel will be leased back to the same MOL subsidiary under a 240-month (twenty-year) bareboat charter contract. The total estimated charter fees Oriental Fleet will receive over the lease term are approximately CNY 3.18 billion. At the conclusion of the charter, the MOL subsidiary is obligated to repurchase the vessel for a nominal price of USD 1.
A representative for COSCO Shipping Development stated that this sale-and-leaseback agreement is part of the company’s core ship leasing business, helping to expand the scale and improve the quality of its vessel assets. This transaction is expected to contribute to generating a stable, long-term income and cash flow, while also strengthening the company’s overall financial health and supporting its sustainable development strategy.
Source: Phaata.com (According to BairdMaritime)
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