Watson Farley & Williams (“WFW”) advised Industrial Bank Financial Leasing Co., Ltd. (“CIBFL”) on a leasing transaction for two 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.
Delivery of the vessels
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, CIBFL entered into the shipbuilding contracts with the Korean shipyard and will take delivery of the vessels as purchasers under the shipbuilding contracts.
In addition to advising CIBFL on the terms and conditions of the conventional leasing documents, WFW negotiated on their behalf for bespoke direct agreements to supplement the shipbuilding contracts.
Important LNG leasing transaction
CIBFL, a subsidiary of Industrial Bank Co., Ltd., provides direct financial leasing, leaseback, supplier leasing and other leasing services. They also service customers in the energy, modern service, chemical, equipment manufacturing and other sectors. The WFW Hong Kong Assets Structured and Finance team that advised CIBFL was led by Partner - Guan Jian, supported by Associate Catherine Tse and Legal Manager - Sean Feng.
Lead Partner - Guan Jian commented: "We are delighted to have advised CIBFL on this important LNG leasing transaction which represent an important a step towards promoting clean energy and sustainability within the shipping sector. The successful completion of the transaction highlights our team’s expertise in handling unconventional leasing transactions."
