Cosco Shipping Development in sale and leaseback of four boxships

Cosco Shipping Development (Hong Kong), a subsidiary of Cosco Shipping Development, will sell four container ships via its four single vessel company CSCL Spring Shipping, CSCL Summer Shipping, CSCL Winter Shipping and CSCL Bohai Sea Shipping Co, and leaseback the four ships from the subsidiaries of Financial Products Group (FPG).

Each of the four single vessel companies is incorporated in Hong Kong and an indirect wholly owned subsidiary of the Cosco Shipping Hong Kong.

The aggregate transaction price is $267m (equivalent to approximately HK$2.09bn).

The deal allows the group to obtain additional financing with the vessels and expands the company’s financing channels. The proceeds from the transaction will be used for the general working capital of the group, Cosco Shipping Development stated in a filing.