Watson Farley & Williams (WFW) has advised Jiangsu Financial Leasing Co., Ltd. (JSFL) on the US$75 million financing for 10 chemical/oil products tankers and four general cargo vessels owned by the Yildirim Group (Yildirim).
The transaction was not a pure sale and leaseback as the closing mechanism was complex as it involved the prepayment of outstanding exposure from a previous transaction, discharging securities promptly, and multiple transfers on the closing date.
Structured loan-to-value ratio
The use of mortgage-backed vessels allowed the parties to use a structured loan-to-value ratio for lower-value vessels. This unique blend of finance leases and mortgaged vessels showcases the flexibility of Chinese leasing structures.
Despite involving 14 vessels of various types and multiple parties, the transaction was efficiently executed within a short period of one month.
Jiangsu Financial Leasing Co., Ltd. and YILDIRIM
YILDIRIM Group is a highly diversified, vertically integrated, global industrial conglomerate
Established in 1985, JSFL is a prominent player in the financial leasing sector in China. It is the first and sole financial leasing company listed on the main board of the Shanghai Stock Exchange.
YILDIRIM Group is a highly diversified, vertically integrated, global industrial conglomerate with headquarters in Amsterdam, Netherlands, and Istanbul, Türkiye. It currently operates in 57 countries across five continents, employing 25,000 employees worldwide in nine industries.
Shipping portfolio expansion
The WFW Hong Kong Assets Structured and Finance team that advised JSFL was led by Hong Kong Office Head - Christoforos Bisbikos, supported by Associates - Joey Cheung and Jennie Wong.
Christoforos Bisbikos commented, “We are delighted to have advised JSFL, a relatively new player in the ship leasing market that is actively seeking to expand its shipping portfolio, on this complex and challenging financing. This deal showcases JSFL’s dedication and forward-thinking approach in supporting the shipowner's financing requirements."
