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Overview

China Merchant Bank Financial Leasing leases 4 ships to Mediterranean Shipping Company in 2019

Commitment Year•2019Country 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
Dec 1, 2019

Geospatial footprint

Map overview

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This project is a lease agreement for four 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 Merchant Bank Financial Leasing leases 4 ships to Mediterranean Shipping Company in 2019

Interest type•Unknown

Narrative

Full Description

Project narrative

In August 2017, China Merchant Bank Financial Leasing Co. Ltd., (CMBFL) ordered 4 ships from Samsung Heavy Industries. The 4 units are labeled Samsung 2248, Samsung 2249, Samsung 2250, and Samsung 2251; they are registered to Hong Kong-incorporated special purpose vehicles (SPV), Sea 60 Leasing, Sea 61 Leasing, Sea 62 Leasing, and Sea 63 Leasing, respectively. At the same time, CMBFL signed an agreement to lease the ships to Mediterranean Shipping Company, S.A. (MSC) after its delivery in December 2019. Japanese tonnage provider Doun Kisen also ordered 2 ships from Samsung and participated in the leasing deal with MSC.

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.