Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

CM International Financial Leasing to grow portfolio, eyes boxship segment

CM International Financial Leasing to grow portfolio, eyes boxship segment
CM International Financial Leasing Corp (CMIFL), a relatively newly established financial institution, is looking to grow it ship finance portfolio and to enter the container shipping market, as it senses opportunities amid the weak shipping market.

“We are staying cautious in this bad market but there are still good companies, and there are opportunities in segments such as specialised vessels,” said Simon Liu, managing director of shipping leasing at CMIFL.

Established in May 2014 jointly through China Minsheng Investment Co and Korea’s Hana Bank, CMIFL officially opened for business in Shanghai in June 2015. China Minsheng owns 75% stake while Hana Bank owns the remaining 25%.

Since it commenced business last year, CMIFL has disbursed a total of RMB3.6bn ($552m) with leasing assets including dredger and port machinery.

“We are going to enter the segment of mega container ships,” Liu said, pointing out that positive prospects are expected in the boxship trade as the segment goes through a consolidation phase of mergers and shifting alliances.

He told delegates at the Capital Link China Shipping Forum held on Tuesday in Shanghai that CMIFL’s ship finance value is projected to grow as the company looks to expand its portfolio.

Liu further noted that despite the sluggish global shipping market, China’s financial institutions have generally yet to shy away although European banks have held back due partly to greater regulations such as Basel III.

Liu cautioned that the shipping market slump means CMIFL is focusing a lot on the capability of the client itself when deciding on financing agreements, especially if the value of the ship becomes no longer reliable. The financial institution is also looking at the ship type to decide if the project has comparatively more stable earnings and if it has more favourable market developments.