Gibson charts Chinese banks’ leading role in tanker finance
Shipbroker Gibson’s latest weekly report charts China’s massive influence when it comes to the financing and sale and leaseback of tankers.
“Chinese financial institutions have sprung up over the past few years keen to fill the gap left by traditional lenders,” Gibson reported, stating that Chinese financiers are keen on sale and leaseback deals because lenders are still worried about payment defaults.
Gibson records indicate that Bank of Communications Financial Leasing has financed around 5.2m dwt of tanker tonnage spread amongst refinancing existing tonnage and newbuildings. The Industrial & Commercial Bank of China (ICBC) portfolio is estimated at 2m dwt of existing tanker tonnage but this particular bank is more heavily involved in financing in a wide range of shipping sectors. Minsheng Financial Leasing, one of China’s largest lessors, is financing more than 300 vessels, more than doubling its portfolio in three years with tanker tonnage representing 15% of this total.
“Clearly, China has once again built a formidable challenge to the traditional western players, in yet another service sector of shipping,” Gibson noted.
The article leaves the impression that the terms ‘bank’, ‘financier’, ‘financial institution’ and ‘leasing company’ are all the same in China. That is a bit too much of a simplification in my view.
When they are all state-owned, the gap between each organisation does narrow, Yves!