CDB Leasing buying two GasLog LNG carriers for up to $284 million

Chinese leasing company China Development Bank Financial Leasing (CDB Leasing) has entered into agreements with units of GasLog and GasLog Partners to purchase two LNG carriers.

Illustration only; Archive. Courtesy of GasLog

According to CDB Leasing’s stock exchange filing, the company entered into vessel purchase agreements with Gas-five, an entity indirectly wholly owned by GasLog Partners, and Gas-nine, indirectly wholly owned by GasLog, on 20 March.

Pursuant to the deals, CDB Leasing agreed to purchase two LNG carriers at a consideration not exceeding $284 million.

After the completion of the transaction under the vessel purchase agreements, CDB Leasing will enter into operating lease agreements with GasLog units to lease the vessels with fixed rent, the filing states.

Prior to the new agreements, GasLog completed the sale of LNG carrier GasLog Salem to a subsidiary of CDB Leasing for $128 million.

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The company said at the time it will also bareboat charter-in the vessel from the leasing company for a period of five years. This charter ends in October 2026, with no obligation to purchase the vessel at the end of the lease.

In its financial report which includes a three-month period and the year ended 31 December 2022, GasLog revealed an unsolicited non-binding proposal to GasLog Partners to acquire all of the outstanding common units.