ICBC International participates in $269 million lease with Vale International SA for use of three VLOC vessels

On June 30, 2016, Vale International SA (‘Vale’) and a consortium led by ICBC International (ICBC), a wholly-owned subsidiary of the Industrial and Commercial Bank of China, concluded the purchase and sale transaction of three VLOC vessels with 400,000 tons capacity previously operated by Vale. The transaction was worth $269 million and the amount was received by Vale through the delivery of the ships.

Additional details

1. AidData assumes that the December 8, 2015 agreement was a capital lease agreement. 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.

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