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Overview

China Merchants Bank Financial Leasing leases 6 container ships to Mediterranean Shipping Company in 2023 (Linked to Record ID#104402)

Commitment Year•2023Country of Activity•SwitzerlandDirect Recipient Country of Incorporation•SwitzerlandSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2023
Start (actual)
Jul 23, 2023

Geospatial footprint

Map overview

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This project is a lease agreement for six ships to Mediterranean Shipping Company (MSC), headquartered at Chem. Rieu 12, 1208 Genève, Switzerland. More detailed locational information can be found at: https://www.openstreetmap.org/way/182090240

Stakeholders

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

Funding agencies

State-owned companies

  • China Merchants Bank Financial Leasing Co., Ltd. (CMBFL)

Receiving agencies

Private Sector

  • Mediterranean Shipping Company Group S.A. (MSC)

Loan description

China Merchants Bank Financial Leasing leases 6 container ships to Mediterranean Shipping Company in 2023

Interest type•Unknown

Narrative

Full Description

Project narrative

In March 2021, CSSC (Hong Kong) Shipping Co and China Merchant Bank Leasing Co. signed a construction agreement with Guangzhou Shipbuilding International, a subsidiary of China state Shipbuidling Corporation, to build 8 container ships. On July 24, 2023, one of the ordered ships, the No.1 16,000TEU container ship "MSC NOA ARIELA", was delivered. The ship is currently the largest tonnage container ship built in South China. The ship was designed by MARIC, WinGD provided the main engine, and SMDERI provided the desulfurization system. It has a total length of 366 meters, a molded width of 51 meters, a molded depth of 30.2 meters, and a design draft of 14.5 meters. It can carry up to 16,616 standard containers. In addition to these technologies, the first six ships have been designed to accommodate liquefied natural gas (LNG) power functions, while the remaining two ships will use LNG dual-fuel propulsion systems. The New Panamax containership boasts impressive dimensions, with a length of 366 meters, a molded width of 51 meters, a molded depth of 30.2 meters, and a design draft of 14.5 meters. Its cargo capacity allows it to accommodate up to 16,616 standard containers. At the same time, CSSC (Hong Kong) Shipping and Mediterranean Shipping Co. entered into a leasing agreement to lease 6 ships (including MSC NOA ARIELA) (Record ID#104402) while China Merchants Bank Financial Leasing Co., Ltd. (CMBL). leased 2 ships to MSC (Record ID#104403).

Staff comments

1. A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments. Under a capital lease (a financial arrangement where the lessee/borrower uses an asset and pays regular installments plus interest to the lender/lessor), rental payments are usually classified as interest and obligation payments, similarly to a mortgage (with the interest calculated each rental period on the outstanding obligation balance). AidData codes capital leases as loans.