Skip to content
AidData logo

Overview

CCB Financial Leasing enters into sale-and-leaseback agreement worth $132.8 million USD with Globe Shipholding for two VLCCs

Commitments (Constant USD, 2023)$137,844,739
Commitment Year•2019Country of Activity•GreeceDirect Recipient Country of Incorporation•PanamaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2019
Last repayment (originally scheduled)
Dec 30, 2026

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 Commercial Banks

  • CCB Financial Leasing Co., Ltd. (CCBFL)

Receiving agencies

Private Sector

  • Globe Shipholding S.A.

Loan description

CCB Financial Leasing enters into sale-and-leaseback agreement worth $132.8 million USD with Globe Shipholding for two VLCCs

Interest type•UnknownMaturity•8 years

Narrative

Full Description

Project narrative

In or around January 2019, CCB Financial Leasing Co., Ltd. (CCBL) entered into a $132.8 million USD sale-and-leaseback agreement with two subsidiaries of Globe Shipholding S.A. — a Greece-based group of companies maintaining a fleet of crude carrier tankers managed by Greece's Almi Tankers S.A. — for two Very Large Crude Carriers (VLCCs). This sale and capital leaseback transaction carried a maturity period of eight years, with the proceeds used by Globe for refinancing of bank loans secured on the two tankers, which were acquired from and chartered back to its subsidiaries. This was reportedly the first completed sale-and-leaseback of VLCCs in the Chinese leasing community.

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. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products.