China Development Bank Financial Leasing (CDB Financial Leasing) has added to its leased fleet with a deal for ultramax resales.
The company said it has agreed to pay not more than $67m combined for two vessels originally ordered by Hong Kong owner Smooth Shipping at Sainty Shipbuilding (Yangzhou) in a contract novation transaction.
Smooth Shipping and the yard are controlled by the same owner, Jiangsu Soho Holdings.
CDB Financial Leasing will lease the ships on delivery.
The company did not give further details, but a Jiangsu Soho company will likely operate the ships if the purchase is a straight financing deal.
The price was arrived at by arm’s length negotiations with reference to market prices for newly built ultramaxes published by UK broker Clarksons at about $34m each.
CDB Financial Leasing said the transaction is “conducive to giving full play to the advantages of all parties and increasing the market share of the company in the vessel market and is in line with the company’s business development strategy”.
Smooth Shipping, which owns the 17,800-dwt product tanker Raina (built 2013), is controlled by Jiangsu Sainty Assets Management, which has an anchor-handling tug supply unit.
Its ultimate owner is Jiangsu Soho Holdings Group, which also controls Sainty Shipbuilding.
Shipbuilding sources report that since May this year, the yard has been revived under this ownership.
It has sealed deals worth about $320m for 10 ultramaxes with owners such as Sea Traders and Jiangsu Ocean Shipping.
A further eight ships are under negotiation.
CDB Financial Leasing owns a fleet worth $11.2bn, according to VesselsValue, which lists 232 ships, including 48 ultramaxes, as well as container ships, tankers and LNG carriers.
