China Development Bank (CDB) has confirmed that it may consider offloading its leasing arm.
Shares in Hong Kong-listed China Development Bank Financial Leasing (CDB Leasing) were suspended on Tuesday at the request of the company after media reports emerged suggesting that a disposal might be imminent.
The bank said it has continued to “deepen reforms and initiated an assessment in relation to the relevant businesses of [CDB Leasing], including exploring plans such as a potential transfer of the company’s shares”.
However, it added, there was “no certainty as to the outcome of the business assessment”.
CDB Leasing said: “On 29 June 2024, the company noted media reports regarding the potential transfer of the company’s shares by CDB.
“Subsequently, the company was informed by CDB that, as at the date of this announcement, no agreement or other commitment has been entered into by CDB as to whether to proceed with any related transaction.”
If any legally binding agreement or commitment is entered into regarding transactions related to the business assessment, an announcement will be made by the company “as and when appropriate”.
CDB Leasing said its parent company would “continue to exercise its rights and fulfil its shareholder obligations and support the company in maintaining its operational stability and liquidity safety”.
Reports of a potential sale first appeared in the aviation media a little over a year ago. In addition to shipping assets, CDB Leasing’s portfolio includes a fleet of 272 modern jet airliners.
The reason given at the time for the sale was said to be a “shift in policy … direction after years of focusing on state-owned commercial enterprises”.
Under the direct jurisdiction of the State Council of China, CDB is the country’s biggest policy bank and one of the world’s largest institutions supporting domestic and foreign infrastructure projects.
CDB is one of three Chinese policy banks alongside the Agricultural Development Bank of China and the Export-Import Bank of China.
In its most recent deal, CDB Leasing agreed to a sale and leaseback with George Procopiou-backed shipowner Dynagas LNG Partners involving four LNG carriers, the 149,700-cbm Clean Energy and Ob River (both built 2007), Amur River (built 2008) and 155,000-cbm Arctic Aurora (built 2013).
Dynagas LNG Partners agreed to take the vessels back on leases of five to 10 years and has the option to buy them back for a total of $95m at the end of their lease periods.
