CDB Leasing splashes $417.6 million on eight bulkers

  • Business & Finance

China Development Bank Financial Leasing (CDB) has signed contracts with three compatriot shipbuilders for the purchase of eight 210,000-ton bulkers.

As disclosed in a stock exchange filing, two ships from the batch would be built by Qingdao Beihai Shipbuilding Heavy Industry, while Yangzhou COSCO Shipping Heavy Industry and Shanghai Waigaoqiao Shipbuilding would build three bulkers each.

CDB said that the newbuilding bulkers will cost a total of $ 417.6 million.

The purchase will be financed from the company’s own funds, bond issuance funds which might be combined with commercial loans.

The ships are expected for delivery in 2021 and 2022.

CDB plans to lease the ships upon delivery to an unnamed independent third party in the form of a long-term time charter.

The acquisition is in line with CDB’s strategy of increasing its operating lease business income.

The announcement comes on the back of a major shipbuilding deal closed last month, when CDB Leasing bought eight  63,000 dwt bulkers.

Under the deal, New Ocean Shipbuilding in Jiangsu will build the bulkers for a total of $188.9 million.

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