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Overview

CMB Financial Leasing provides USD 648 million sale and leaseback agreement to CMA CGM for eight vessels

Commitments (Constant USD, 2023)$706,787,579
Commitment Year•2016Country of Activity•FranceDirect Recipient Country of Incorporation•FranceSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2016

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 companies

  • CMB Financial Leasing Co., Ltd. (CMB Financial Leasing) (CMBF) (CMBFL)

Receiving agencies

Private Sector

  • CMA CGM S.A.

Implementing agencies

Private Sector

  • APL Co. Pte, Ltd.

Loan description

CMB Financial Leasing provides USD 648 million sale and leaseback agreement to CMA CGM for eight vessels

Interest type•Unknown

Narrative

Full Description

Project narrative

In December 2016, CMB Financial Leasing completed a USD 648 million sale and leaseback agreement with French shipping and logistics company CMA CGM. The agreement covered eight container vessels operated by Singapore-based Neptune Orient Lines, which was acquired by CMA CGM in June 2016. Proceeds from the sale and leaseback agreement allowed CMA CGM to pay off a separate syndicated loan from European lenders that was used to finance the acquisition of Neptune Orient Lines. Other lending details, including tenure and interest rate, are unknown. The vessels will be operated under a bareboat charter by APL Co. Pte., Ltd., an indirect subsidiary of CMA CGM.

Staff comments

1. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products. 2. A bareboat charter, or demise charter, is an arrangement for the chartering or hiring of a ship or boat for which no crew or provisions are included as part of the agreement. The charterer obtains possession and full control of the vessel, along with the legal and financial responsibility for it. The charterer pays for all operating expenses, including fuel, crew, port expenses and P&I and hull insurance. A bareboat charter is in effect a financing arrangement.