On November 18, China Development Bank Financial Leasing (CDB Leasing) issued an announcement regarding the purchase of two vessels.
The announcement disclosed that two wholly-owned special purpose subsidiaries under CDB Leasing (as buyers) entered into a Shipbuilding Contract Renewal Agreement with the original buyer (Smooth Shipping Co., Ltd.) and the seller (Jiangsu Soho Innovation and Technology Group and Sainty Shipbuilding (Yangzhou)) on November 18, 2024. The contract involves the purchase of two bulk carriers, with a transaction amount not exceeding US$67 million (approximately RMB 482 million).
According to the announcement, two wholly-owned special purpose companies of CDB Leasing entered into a shipbuilding contract with Jiangsu Soho Innovation and Technology Group on May 24, 2024, with a total contract price of no more than US$67 million. Since “all applicable percentage rates for transactions under the relevant shipbuilding contract are less than 5%”, the order was not announced at that time.
The transaction will be paid in US dollars and will be financed by CDB Leasing’s own funds and a commercial bank loan. Upon completion of the transaction, the company will lease the vessel under an operating lease model.
The Board of Directors of CDB Leasing believes that the Transaction will help enhance the Company’s market share align with its business development strategy. They also consider the terms fair and reasonable, serving the best interests of the company and its shareholders as a whole.