CMIG Leasing has offloaded five panamax and sub-panamax containerships in the fleet of Singapore's Pacific International Line (PIL), Chinese finance sources said.
Beijing-based Minsheng Financial Leasing (MFL) is said to have paid $88.9m for the 4,335-teu Kota Lihat (built 2013), 4,253-teu Kota Lawa (built 2008), 3,081-teu Kota Karim (built 2006), 2,754-teu Kota Gabung (built 2013) and 2,754-teu Kota Gaya (built 2012).
I believe they [CMIG Leasing] have solved their problem now
Sources said the high price on the deal does not reflect the fair market value of the steel because the ships come with charters attached. The sale is understood not to represent any new financing but a pure asset deal.
VesselsValue prices the five ships at around $10m less and gives the oldest ship only demolition value.
An MFL official was unwilling to comment on the transaction, and representatives of CMIG Leasing and Singapore-based PIL did not immediately respond to requests for comment.
Leasing industry sources believe CMIG Leasing sold the ships for reasons having nothing to do with the company's shipping portfolio but as part of a company-wide cash drive ahead of an October bond payment.
"I believe they have solved their problem now," said an industry source who does not expect further CMIG Leasing sales.
PIL has a number of its ships financed through Chinese financial leasing houses, including ICBC Leasing and China Construction Bank Financial Leasing.
Independent outfits
Despite the similarity of their names, the buying and selling companies are unrelated, but are just two among several significant shipowners called some variation of Minsheng. The older and better established MFL belongs to China Minsheng Bank. CMIG Leasing is affiliated with "the other Minsheng", China Minsheng Investment Group (CMIG), in joint venture with South Korea's Hana Bank.
CMIG Leasing was formerly known as China Minsheng International Leasing but was rebranded in an attempt to help perplexed English speakers. It is not one of the largest players in the crowded Chinese financial leasing sector but is well funded and politically connected.
In ship finance, it has specialised in containerships to some extent since its debut in 2015.
Its parent CMIG was founded by former China Minsheng Bank chairman Dong Wenbiao, a financier with ties to the United Front Work Department of the Communist Party of China.
The group's political connections do not stop at China's borders. Its "global advisory council" boasts former prime ministers of France, Italy, Pakistan, Poland and Singapore, as well as such domestic heavy hitters as the head investment advisor for the city government of Beijing.
More Minshengs
A third Minsheng with a rapidly growing fleet, China Minsheng Trust, is understood to have some overlapping shareholders with CMIG but no connection at the management level.
A fourth Minsheng, the oldest, is the completely unrelated river and coastal container and car-carrier specialist Minsheng Shipping.
