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Overview

China International Marine Containers Financial Leasing leases 5 ships to Mediterranean Shipping Company for $425 million USD in July 2013 (Linked to Record ID#104464 and #104482)

Commitments (Constant USD, 2023)$439,437,799
Commitment Year•2013Country 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
Jul 25, 2013
Last repayment (originally scheduled)
Jul 21, 2030

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project is a lease agreement for 14 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 International Marine Containers Financial Leasing Co. Ltd.

Receiving agencies

Private Sector

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

Loan desecription

China International Marine Containers Financial Leasing leases 5 ships to Mediterranean Shipping Company for $425 million USD in July 2013

Interest type•UnknownMaturity•17 years

Narrative

Full Description

Project narrative

On July 4, 2013, China International Marine Containers Financial Leasing Co. Ltd. ordered seven 8,800-teu container ships from Dalian Shipbuilding Industry Corporation (DSIC) for delivery between 2015 to 2016. Payment terms are very favorable, with just 2% downpayment as the initial installment and the rest on delivery. The seven vessels will then be chartered to Mediterranean Shipping Company (MSC) for 204 months (17 years) for a total cost of $595 million USD, which is equivalent to the vessels' purchase price. This amounts to a rate of $25,000 per vessel per day. Under the agreement, MSC also has the obligation to purchase the vessels on expiry of the lease for $21.5 million USD each. This project is recorded in Record ID#104464. Then, on July 25, 2013, China International Marine Containers Financial Leasing Co. Ltd. ordered five 8,800-teu ships from New Century Shipbuilding Group for $425 million USD. Delivery is expected in 2015. The seven vessels will then be chartered to Mediterranean Shipping Company (MSC) for 204 months (17 years). This amounts to a rate of $25,000 per vessel per day. Under the agreement, MSC also has the obligation to purchase the vessels on expiry of the lease for $21.5 million USD each. This project is recorded in Record ID#104481. Then, on September 12, 2013, China International Marine Containers Financial Leasing Co. Ltd. ordered another 2 ships from New Times Shipbuilding in China for $170 million USD. The terms are similar to the previous two agreements. This project is recorded in Record ID#104482.

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.