Jiangsu Financial Leasing Co has provided financing for 10 chemical and oil product tankers and four general cargo vessels owned by Yildirim Group.
London-headquartered law firm Watson Farley & Williams said it advised the Chinese leasing company.
Despite involving 14 vessels of various types and multiple parties, the transaction was efficiently executed within one month, WFW said.
The use of mortgage-backed vessels allowed the parties to use a structured loan-to-value ratio for lower-value vessels.
The transaction was not a pure sale and leaseback as the closing mechanism was complex.
It involved the prepayment of outstanding exposure from a previous transaction, discharging securities in a timely manner and multiple transfers on the closing date.
This unique blend of finance leases and mortgaged vessels showcases the flexibility of Chinese leasing structures, WFW added.
The WFW Hong Kong structured assets and finance team that advised Jiangsu Financial was led by Hong Kong office head Christoforos Bisbikos, supported by associates Joey Cheung and Jennie Wong.
“We are delighted to have advised [Jiangsu Financial], a relatively new player in the ship leasing market that is actively seeking to expand its shipping portfolio, on this complex and challenging financing,” Bisbikos said.
Established in 1985, Jiangsu Financial is the first and sole financial leasing company listed on the main board of the Shanghai Stock Exchange.
“This deal showcases [Jiangsu Financial’s] dedication and forward-thinking approach in supporting the shipowners’ financing requirements,” Bisbikos added.
Yildirim Group is a diversified industrial conglomerate with headquarters in Amsterdam and Istanbul.
It is a family-owned business, held 100% privately and managed by brothers Ali Riza and Robert Yuksel Yildirim.
It currently operates in 57 countries across five continents, with 25,000 employees worldwide in nine industries, including shipping.
Yildirim Group owns 24% of CMA CGM, the world’s third-largest liner company.
