China Development Bank Leasing (CDBL) has announced that it has entered into sale and leaseback agreements with an undisclosed party for two 162,000 cu m ice class LNG carriers.
Under the agreements, CDBL will acquire the two vessels via two special purpose companies CDBL Ocean and CDBL Planet for $363.8m in total and lease them back to the charterer for 12 years. The total lease interest is around $150m.
Splash research suggests that the two vessels in the transaction most likely are Greek owner Dynagas Holdings’ Clean Ocean (2014-built) and Clean Planet (2014-built). Both vessels have fixed 15-year charter contracts starting from July 2019 with the Yamal LNG project.
Hello Jason:
Do the economics of this transaction work for CDBL?
I don’t mean to be rude, but are the “two special purpose companies” a de-facto means for what would de-jure be called a fraudulent conveyance. Or is it simply the standard state-backed subsidy that seems to be predominant form of investment in China.
You could probably do some serious reporting on this sort of thing.
Best regards…
Jim