Watson Farley & Williams (“WFW”) advised Bank of Communications Financial Leasing Co., Ltd. (“BOCOM Leasing”) on a leasing transaction for three liquified natural gas carriers.
Upon delivery, the vessels will be bareboat chartered to a disponent-owner and sub-chartered to a Middle East charterer on a long-term basis.
Korean and Chinese shipyards
Unlike conventional sale and leaseback transactions where the lessors enter into Memorandum of Agreements (“MOAs”) with the lessees and take delivery of the vessels pursuant to the MOAs, BOCOM Leasing entered into the shipbuilding contracts with the Korean and Chinese shipyards, and will take delivery of the vessels as purchasers under the shipbuilding contracts.
In addition to advising BOCOM Leasing on the terms and conditions of the conventional leasing documents, WFW negotiated on their behalf for bespoke direct agreements to supplement the shipbuilding contracts.
BOCOM Leasing
BOCOM Leasing, a wholly owned subsidiary of Bank of Communications, is a pioneering player in China’s leasing industry and one of the first five financial leasing companies approved by the State Council. The WFW Hong Kong Assets Structured and Finance team that advised BOCOM Leasing was led by Partner - Guan Jian, supported by Associate - Catherine Tse and Legal Manager - Sean Feng.
Guan Jian commented: "We are delighted to have advised BOCOM Leasing on this significant transaction involving LNGs, which is a step towards promoting clean energy and sustainability within the shipping sector."
