WFW advises on $136M Chinese lease financing deal for eight bulk carriers


Watson Farley & Williams (WFW) has advised SPDB Financial Leasing Co., Ltd. (SPDBFL) on two sale and leaseback transactions involving the acquisition from, and bareboat charter back to, the Ciner Shipping group, one of the largest shipping companies in Turkey, of eight bulk carriers.

The vessels comprise four second-hand bulk carriers and four newbuild bulk carriers currently being built by the SUMEC group. The leases entered into, and security granted under, the two transactions are cross-collateralised.

SPDBFL is a financial leasing company established by Shanghai Pudong Development Bank Co. Ltd, COMAC, Shanghai State-owned Assets Operation Co. Ltd and Shanghai Long Hua International Aviation Investment Co. Ltd. The company provides financial leasing services for aircraft, aeronautical facilities, shipping, transportation, engineering machinery, industrial equipment, infrastructure and construction.

The WFW Hong Kong Assets & Structured Finance team advising SPDBFL was led by Partner and Hong Kong Head Christoforos Bisbikos, supported by Senior Associate Ryan Tan, Associate Joey Cheung, Senior Legal Manager Jimmy Choy and Trainee Solicitor Jennie Wong. WFW London Partner Maren Brandes and Hamburg Geprüfte Rechtsfachwirtin Kathrin Lübberstedt advised on the German law aspects of the transaction.

Christoforos commented: “We’re delighted to have assisted SPDBFL on these two important financings. The successful completion of these transactions showcases both SPDBFL’s appetite to identify synergies and explore financing opportunities with reputable international ship operators and WFW’s strong track record assisting leading PRC leasing companies working with respected western shipowners on sale and leaseback financings.”