China Development Bank Financial Leasing (CDB Leasing) has agreed to acquire two more LNG carriers from parties related to Peter Livanos-backed GasLog.
The Hong Kong-listed leasing company has agreed to buy the 155,000-cbm GasLog Saratoga (built 2014) and the GasLog Sydney (built 2013) for a combined total of $284m, according to a regulatory filing.
GasLog and GasLog Partners have agreed to leaseback the GasLog Saratoga and GasLog Sydney, respectively, under five-year deals with no purchase option or obligation, but which will include a profit-share mechanism.
These latest acquisitions lift the CDB Leasing LNG fleet to 11 vessels, with five of those ships acquired from the two GasLog companies.
In October 2021, CDB Leasing agreed to purchase the 155,000-cbm GasLog Shanghai (built 2013) from GasLog Partners for $120m and the 155,000-cbm GasLog Salem (built 2015) from GasLog for $128m.
The vessels were both leased back to their respective sellers under bareboat charters with CDB Leasing for a period of five years with no repurchase option or obligation.
The GasLog Shanghai commenced in February 2023 a two-year charter to Woodside, with the Australian energy company retaining the option to extend by one year.
In March 2022, GasLog also completed the sale and leaseback of the GasLog Skagen (built 2013) with a five-year bareboat charter from CDB Leasing with no repurchase option or obligation.
In September last year, Greek shipowner George Procopiou struck a sale-and-leaseback deal with CDB Leasing for three LNG carrier newbuildings.
It agreed to buy three 200,000-cbm LNG carrier newbuildings from three special purpose vehicles of Pure Energy Ltd, which is owned by the Procopiou family, for not more than $596.52m.
CDB Leasing has leased each of the three ships back to Pure Energy for 10 years at about $813m, with an option to buy the vessels at the end of the charter period for not more than $99.42m each.
The three LNG carrier newbuildings are under construction at Hyundai Samho Heavy Industries and are due for delivery in November and December 2023 and February 2024.
While CDB Leasing is actively expanding its exposure to the LNG market, the sector only makes up a minor part of its current fleet.
The group had a total of 222 ships in operation as of the end of 2022, of which 190 were under operating leases, including 154 bulkers, 32 product tankers, three LNG ships and a single cruise ship.
Ships under finance leases numbered 32 comprising eight bulk carriers, 19 container ships, two product tankers and three LNG carriers.
CDB Leasing has a total of 43 vessels under construction, of which 38 are under operating leases and five under finance leases.
