Dalian: CATIC Shenzhen Holding has announced its indirect subsidiary Shandong Shipbuilding, which has been incorporated into Weihai Shipyard in 2011, has entered into a finance leasing contract with Minsheng Leasing.
Shandong Shipbuilding has agreed to sell the shipyards to Minsheng Leasing for RMB140m and to lease back the shipyards from Minsheng Leasing for a term of 36 months for RMB155m payable in 12 installments, at an annual interest rate is 6.4575%
The shipyards to be sold consist of a 100,000 ton dock for shipbuilding and a 100,000 ton dock for shiprepair. AVIC Beijing and Weihai Shipyard will provide guarantees for the contract.
Upon Shandong Shipbuilding having settled all the payments in the Finance Lease Contract at the expiration date, Shandong Shipbuilding may purchase the shipyards from Minsheng Leasing for the nominal purchase price of RMB1. [11/12/12]