COSCO Shipping Development inks major sale-and-leaseback deal

COSCO Shipping Development has announced a discloseable transaction where its wholly-owned subsidiary, Oriental Fleet, will purchase a chartered vessel and then lease it back to the charterer. Oriental Fleet will acquire one chartered vessel from the charterer for approximately RMB2,578.93 million. Immediately following delivery, the vessel will be leased back to the charterer for a total estimated charter hire of approximately RMB3,182.47 million over a 240-month lease period.

The chartered vessel, a 271,000 cubic meter LNG carrier, is expected to be delivered around July 2029. This arrangement enhances COSCO Shipping Development's ship leasing business, contributing to long-term income and cash flow, and supporting global energy conservation and emission reduction initiatives. The charterer is ORYX LNG NO. 10 SHIPPING CORPORATION, a Liberian company wholly-owned by Mitsui O.S.K. Lines, Ltd. (MOL), and is independent of COSCO Shipping Development.

The transaction constitutes a discloseable transaction under Chapter 14 of the Listing Rules, requiring reporting and announcement. The terms were determined through arm's length negotiation, considering the estimated total ship cost and prevailing market practices for financial leasing services.