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Overview

ICBC Leasing enters into a finance lease with a British multinational oil and gas company for two LNG carriers

Commitment Year•2016Country of Activity•United KingdomDirect Recipient Country of Incorporation•UnknownSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2016
Start (actual)
Dec 1, 2016
End (actual)
Dec 1, 2016

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

  • ICBC Financial Leasing Co., Ltd. (ICBCFL) (ICBC Leasing)

Receiving agencies

Private Sector

  • Unspecified British Multinational Oil and Gas Company

Loan description

ICBC Leasing enters into a finance lease with a British multinational oil and gas company for two LNG carriers

Interest type•Unknown

Narrative

Full Description

Project narrative

In December 2016, ICBC Financial Leasing Co., Ltd. (ICBCFL; ICBC Leasing) — a Chinese state-owned leasing company and wholly-owned subsidiary of the Industrial and Commercial Bank of China (ICBC) — entered into and completed a finance lease agreement with a large British multinational oil and gas company for two new liquefied natural gas (LNG) carrier vessels.

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. 2. While the specific borrower is unknown, well-known British multinational oil and gas companies include Royal Dutch Shell, BP, and Tullow Oil. 3. As the transaction was described as completed in December 2016, AidData assumes it was properly finished in that month.