Minsheng Financial Leasing is continuing to grow its trading fleet as a shipowner and asset player, having purchased two eight-year-old kamsarmaxes.
Commercial sources said Minsheng will remain an aggressive buyer and can be expected in the near term to focus on purchasing Japanese-built kamsarmax tonnage of under 10 years old.
The acquisition of the kamsarmax duo marks Minshing’s entry into a new market segment, and its latest step as a conventional shipowner rather than financial leasing company.
Price premium
The Beijing-based outfit picked up the Sanoyas Shipbuilding-constructed, 83,600-dwt Global Star (built 2010) from Nissen Kaiun Kaisha for a reported $19.1m.
It bought the Universal Shipbuilding-constructed, 81,500-dwt Sky Jade (built 2010) in late September from Mitsubishi Corp for a reported $19.2m.
Commercial sources close to the deals said the reported price tags are "fairly accurate". Both buys were at a premium to the market as assessed by VesselsValue, which puts the ships at about $18m each.
The Global Star and Sky Jade are to be delivered to the company in November and January, respectively. Minsheng is said to have secured one-year time charters for both vessels.
Those charterers have not been disclosed, but both are believed to be Chinese-owned bulker operators based in Hong Kong and Singapore.
Some sources said further kamsarmax deals are already in the works.
Minsheng, which is owned by non-state owned China Minsheng Bank, first became a bulker operator involuntarily, as a result of repossessions of financially owned tonnage, as did Beijing rival ICBC Leasing
Minsheng, which is owned by non-state owned China Minsheng Bank, first became a bulker operator involuntarily, as a result of repossessions of financially owned tonnage, as did Beijing rival ICBC Leasing.
Other major Chinese leasing players, including Bank of Communications Financial Leasing and CDB Leasing, have since built up non-financial shipowning businesses because of the increasing appeal of the model.
True shipowner
But after Minsheng's decision last year to become more of a true shipowner rather than financier, and to concentrate acquisitions accordingly, it has built a chartering team and a fleet ranging from supramaxes to panamaxes, and now kamsarmaxes.
The company has also become an asset player, with sales meant to generate cash for fleet building, especially with a view to increasing its proportion of Japanese-built tonnage.
In August, the company agreed to sell a Taizhou Kouan Shipbuilding-constructed ultramax that it bought in 2017.
TradeWinds understands that the deal for the 63,000-dwt Ocean Broaden (ex-Star Jing, built 2013) closed only on 31 October. The ship went to an unknown Chinese buyer for $15.7m.
Asset player
TradeWinds reported Minsheng's entry into the ranks of asset-playing shipowners with its acquisition of the Ocean Broaden from Norr Systems in August 2017 for a reported $14.8m.
It also bought a sistership that was promptly flipped to a Chinese buyer, Shanghai Newseas Navigation.
This year, the company broadened its non-leasing shipowning business into tankers, with the purchase of a former Parakou Shipping MR product carrier at auction in South Africa in January.
A month ago, it broke ground in a segment that Chinese leasing houses have avoided, with the purchase of two 2011-built VLCCs from Dr Peters with charters to Cosco attached. This deal gives Minsheng potential exposure as an operator once the charters expire.
However, in dry bulk, Minsheng's plans are already further advanced and more fully defined.
Commercial sources said the company is working to build a fleet of varied modern tonnage. Currently its self-operated fleet, not counting vessels it owns as the financier for other shipowners, includes five supramaxes, 12 ultramaxes and 17 panamaxes.
This article has been amended since publication to reflect that Minsheng Financial Leasing is owned by China Minsheng Bank.
