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Overview

CMBFL provides $77 million to Capital Product Partners L.P. for sale and lease back of vessels M/V Athos and M/V Aristomenis

Commitments (Constant USD, 2023)$79,443,504
Commitment Year•2020Country of Activity•Marshall IslandsDirect Recipient Country of Incorporation•Marshall IslandsSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 20, 2020
Start (actual)
Jan 23, 2020
Last repayment (originally scheduled)
Jan 18, 2025

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

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

Receiving agencies

Private Sector

  • Capital Clean Energy Carriers Corp. (formerly Capital Product Partners L.P.)

Loan description

CMBFL provides $77 million to Capital Product Partners L.P. for sale and lease back of vessels M/V Athos and M/V Aristomenis

Grant element•11.1947%Interest rate (t₀)•4.3795%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On January 20, 2020, Capital Product Partners L.P. — an international owner of ocean-going vessels that is legally incorporate in the Marshall Islands — entered into an agreement for the sale and lease back of the vessels M/V Athos and M/V Aristomenis with CMB Financial Leasing Co., Ltd. (CMBFL) for $38.5 million each. The lease agreement has a duration of five years, bears an interest at LIBOR plus a margin of 2.55% and includes a purchase option for Capital Product Partners L.P. to acquire each vessel on expiration of the lease at the predetermined price of $22.5 million, and requires Capital Product Partners L.P. to pay the amount of $7.5 million to CMBFL if the option is not exercised. In addition, Capital Product Partners L.P. has various purchase options commencing from the first year anniversary of the lease. The full amounts were drawn on January 23, 2020.

Staff comments

1. Capital Product Partners L.P. (NASDAQ: CPLP), a Marshall Islands master limited partnership, is an international owner of ocean-going vessels. CPLP currently owns 14 vessels, including thirteen Neo-Panamax container vessels and one capesize bulk carrier. 2. AidData has estimated the all-in interest rate by adding 2.55% to average 6-month LIBOR in January 2020 (1.83895%). 3. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products.