CDB Leasing splashes $137 million on Oldendorff’s sextet

Hong Kong-listed China Development Bank Financial Leasing is buying six vessels from German shipowner Oldendorff Carriers GmbH & Co for $137 million.

The vessels include six 60,000-ton bulkers, CDB Leasing said, adding that upon the completion of the transaction the vessels would be leased back to Oldendorff.

“We are taking all ships back on a floating rate, index-based bareboat charter for 5 + 2 + 1 years. The deal is not a sale and leaseback transaction and there are also no re-purchase obligations involved,” Oldendorff said in a release.

The ships in question are 2019-built Jan Oldendorff, Jens Oldendorff, Jonas Oldendorff and Jacob Oldendorff, the 2014-built Alwine Oldendorff and 2015-built August Oldendorff.

CDB Leasing plans to finance the purchase from its own funds and/or commercial bank loans.

As disclosed, 10% of the consideration will be paid as a deposit at the date of the purchase agreement, and the remaining 90% will be paid once the ships are ready for delivery.

Oldendorff estimates the ships will be delivered to CDBL between 8^th December 2020 and 6^th February 2021.

The deal is in line with the leasing company’s business strategy of increasing its market share in the vessel market.

“Our previous deals with CDBL have involved the sale of 13 second-hand Ultramaxes with floating T/C back and 4 Kamsarmax newbuildings with floating B/B back. Furthermore, we have chartered two CDBL owned Newcastlemax newbuildings, which were delivered from Cosco Yangzhou Shipyard in April and May 2020,” Oldendorff added.

“The above sale of 6 Ultras means, that we now have done 25 transactions with CDBL, with whom we enjoy an excellent cooperation.“

Over the past year, the German owner has been busy with a massive renewal of its fleet.

Since early 2019, the company has taken delivery of a total of 23 bulk carrier newbuilds with eco designs. The vessels were mostly ordered between 2015 and 2017.

In addition to the owned ships, the company is also set to take over another 16 newbuildings from Post-Panamax to Newcastlemax class by early 2021. These ships have been taken on long term charter from other owners, mostly on a floating rate basis.