China Development Bank Financial Leasing (CDB Leasing) continues to add LNG assets to its portfolio following a Finance Lease Agreement with entities linked to George Prokopiou Dynagas LNG Partners LP, a company listed on the New York Stock Exchange.
The financial leasing company in China said in a regulatory filing that the company’s four wholly-owned special purpose vehicles sealed a deal to purchase the leased assets from the entities, which are principally engaged in business of operation of LNG vessels, at a consideration of not exceeding $477.5m.
It also agreed to lease the leased assets to the entities with a lease period between 60 months and 120 months.
The leased assets are four LNG vessels. The appraised value of the leased assets is around $477.5m in total.
The total amount of lease interest for the lease period is expected to be approximately $130.0m, the China Development Bank Financial Leasing said.
“The lease principal and lease interest shall be paid by the Lessees to the Lessors on a quarterly basis in installments during the lease period,” the China Development Bank Financial Leasing added.
When the lease period expires, the entities specialising in LNG vessels may purchase back the leased assets from the lessors at a consideration of not exceeding $95.5m in nominal value.
To remind, China Development Bank Financial Leasing is a national non-banking financial institution regulated by the NFRA, the only leasing business platform under China Development Bank and the first listed financial leasing company in China.
