3 October, 2018
Stephenson Harwood (Singapore) Alliance has advised Minsheng Financial Leasing Co., Ltd. (Minsheng Financial Leasing) in relation to the refinancing of a portfolio of 10,000 marine containers, through a Japanese Operating Lease with Call Option (JOLCO) with head lease and sub-lease structure.
This was the first JOLCO transaction to be closed on marine containers for a Chinese financial leasing houses; it involved structuring on top of existing management and lease arrangements, and incorporating hedging facilities to stabilise interest rates. BNP Paribas acted as sole arranger, as well as lender, fixed rate provider, and NTT Finance Corporation acted as lessor.
A subsidiary of China Minsheng Bank, Minsheng Financial Leasing, which was established in April 2008, provides financial leasing services in China, with a focus on the shipping, aviation and equipment sectors. It is one of the first five finance leasing enterprises, with a banking background, approved by the China Banking and Insurance Regulatory Commission (CBIRC).
"We are pleased to have advised our long-standing client Minsheng Financial Leasing on this important transaction," said Huay Yee Kwan, partner, Stephenson Harwood (Singapore) Alliance. "This financing is the first of its kind in the shipping market, and is a major step forward in opening doors to a new investor market for Minsheng Financial Leasing and other Chinese lessors."
The Stephenson Harwood (Singapore) Alliance team was led by finance partner Huay Yee Kwan, with support from associate Cherilyn Koh. Senior associate Ethan Tan assisted with the hedging aspects of the transaction.
