CDB Leasing finances Golar FLNG unit via sale and leaseback
Chinese lessor has agreed to acquire and leaseback a Golar LNG floating LNG carrier for $500m
The vessel completed its conversion in 2023 and started operations this year, with BP as charterer
CDB Financial Leasing has agreed to provide financing for a floating LNG vessel owned by Nasdaq-listed Golar LNG through a sale and leaseback deal.
The Hong Kong-listed Chinese lessor said in a stock exchange filing it will acquire the FLNG for $500m and lease it to a Golar LNG-owned single purpose vehicle for 12 years.
The unit operates Gimi (IMO: 7382732), which was built in 1976 and converted into a floating LNG facility in 2023, with a capacity of 2.7m tonnes per annum.
The vessel became operational this year, and is currently chartered to BP until 2045, according to Golar LNG’s website.
CDB Leasing said the sale and leaseback project has a floating interest rate, which will be adjusted by reference to the Secured Overnight Financing Rate plus a premium. It expects to generate around $250m in interest income over the lease term.
At expiry, the lessee can purchase back the asset at 30% of the selling price.
As one of China’s top shipping lessors, CDB Leasing had a portfolio of 248 in-service vessels as of the end of June 2024, according to its latest financial report. Of those, there were 172 dry bulkers, 44 product tankers, 13 containerships, 17 LNG carriers and two cruiseships.
In addition, the company also had 14 vessels on order, including nine bulkers and five product tankers.
