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Overview

SPDBFL enters into sale and leaseback transactions with Ciner Shipping Group worth $136 million for eight bulk carriers

Commitments (Constant USD, 2023)$128,509,002
Commitment Year•2022Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 1, 2022

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

  • SPDB Financial Leasing Co., Ltd. (SPDBFL)

Receiving agencies

Private Sector

  • Ciner Shipping

Implementing agencies

State-owned companies

  • SUMEC Group Corporation (SUMEC)

Loan description

SPDBFL enters into sale and leaseback transactions with Ciner Shipping Group worth $136 million for eight bulk carriers

Interest type•Unknown

Narrative

Full Description

Project narrative

In October 2022, SPDB Financial Leasing Co., Ltd. (SPDBFL) enterred into sale and leaseback transactions worth $136 million with Ciner Shipping Group for eight bulk carriers. The vessels consists of four second-hand bulk carriers and four newbuild bulk carriers that were to built by the SUMEC Group Corporation (SUMEC). The leases entered into, and security granted under, the two transactions are cross-collateralized.

Staff comments

1. SPDBFL is a financial leasing company established by Shanghai Pudong Development Bank Co. Ltd, COMAC, Shanghai State-owned Assets Operation Co. Ltd and Shanghai Long Hua International Aviation Investment Co. Ltd. The company provides financial leasing services for aircraft, aeronautical facilities, shipping, transportation, engineering machinery, industrial equipment, infrastructure and construction. 2. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products. 3. A bareboat charter is when the owner of the vessel (in this case, SPDBFL) leases (or "charters") the vessel to a lessee ("charterer") without any crew or supplies. The charterer assumes full responsibility for the operation of the vessel. 4. The WFW Hong Kong Assets & Structured Finance team advising SPDBFL was led by Partner and Hong Kong Head Christoforos Bisbikos, supported by Senior Associate Ryan Tan, Associate Joey Cheung, Senior Legal Manager Jimmy Choy and Trainee Solicitor Jennie Wong. WFW London Partner Maren Brandes and Hamburg Geprüfte Rechtsfachwirtin Kathrin Lübberstedt advised on the German law aspects of the transaction. 5. SUMEC Group Corporation (SUMEC), established in 1978, is a key member of China National Machinery Industry Corporation (SINOMACH), a state-owned company. 6. Ciner Shipping Group is one of the largest (private) shipping companies in Turkey.