Genting Hong Kong has raised $900m through the sale and leaseback transaction of one of its largest cruiseships with a consortium of four Chinese leasing companies.
The 150,000-gt Genting Dream (built 2016), a vessel that is operated under the Dream Cruises brand, has been acquired by special purpose vehicles indirectly but wholly-owned by the Bank of Communications Financial Leasing, CMB Financial Leasing, CCB Financial Leasing Corporation and China Development Bank Financial Leasing.
DNB Markets acted as advisor to Genting Hong Kong.
The deal is being hailed as a major milestone for all parties as is the first ever sale and leaseback transaction closed by a consortium of four Chinese leasing companies.
“We are very appreciative of the consortium for supporting Genting Hong Kong in the refinancing of Genting Dream which allows a longer repayment period with a balloon payment at the end of 12 years,” said Tan Sri Lim Kok Thay, Chairman and Chief Executive of Genting Hong Kong.
Genting Hong Kong said part of the funds received was used to repay the outstanding balance of approximately $502m of the existing bank loan for Genting Dream.
The company did not elaborate on how the remaining proceeds would be allocated, although it is likely that it will be used in part to fund an ongoing cruiseship newbuilding program at the company’s wholly-owned shipyard in Germany.
Genting Hong Kong revealed last December that its cruise division Genting Cruise Lines (GCL) had begun design work on a series of mid-sized cruise ships it plans to build at MV Werften in Germany.
Dubbed the Universal Class, the LNG-powered, 88,000-gt vessels will accommodate 2,000 passengers. The company intends to charter them to international hotel brands that want to enter the cruise industry, but are unable to do so as almost all building slots are occupied till the end of the decade.
MV Werften is currently building a series of expedition cruiseships for Genting Hong Kong’s Crystal Cruises division, as well as two 2 08,000 gross tons Global Class ships that will operate for Dream Cruises.
Last September Genting Hong Kong sold a $489m slice of Dream Cruises to TPG Capital Asia, TPG Growth and Ontario Teachers ’ Pension Plan.
GCL operates a fleet of 15 ships spread across the Star Cruises, Dream Cruises and Crystal Cruises brands.
