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Overview

China Eximbank contributes to USD 1.38 billion syndicated lease financing facility to CMA CGM to finance the acquisition of nine containerships

Commitments (Constant USD, 2023)$231,448,148
Commitment Year•2018Country of Activity•FranceDirect Recipient Country of Incorporation•FranceSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 20, 2018
Start (actual)
Sep 1, 2020

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Cofinancing agencies

Private Sector

  • Société Générale S.A. (SocGen or Societe Generale)

Receiving agencies

Private Sector

  • CMA CGM S.A.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

2018 syndicated $1.38 billion USD lease financing facility from China Eximbank and others to CMA CGM to finance the acquisition of nine containerships

Interest type•Unknown

Narrative

Full Description

Project narrative

On December 20, 2018, a syndicate of six banks -- including China Eximbank -- reached financial close on a USD 1.38 billion syndicated lease financing facility to CMA CGM, a French shipping and logistics company. Lending terms, including the maturity and interest rate, are unknown. Proceeds from the facility will be used to finance construction of nine container ships to be built by a consortium of five unknown Chinese shipyards. The nine ships will then be leased back to CMA CGM. Each of the nine ships is 400 meters long has a capacity of 22,000 TEUs and have an innovative fuel use system, consuming both fuel oil and liquified natural gas. When completed, the ships will become the world's largest containerships. The first of the nine ships, the "Jacques Saadé," was delivered in September 2020. The delivery schedule for the remainder of the ships is unknown. The facility was insured by Sinosure, marking the first time that the company has underwritten ship financing using French tax law. Six banks participated in the syndicate, including Societe Generale, China Eximbank, and four unknown European banks. The individual contributions of each lender are unknown.

Staff comments

1. AidData is unable to ascertain the individual contributions made to the facility by each member of the syndicate, therefore equal contributions from each of the six lenders have been assumed. Likewise, while only two banks are named as members of the syndicate, AidData has ascertained that a total of six lenders participated, therefore the equal contribution assumption assumes six lenders for this project record. (1.38/6 = 230)