China's COSCO Shipping Development has agreed to acquire 15 bulk carriers of 210,000 DWT under two separate shipbuilding contracts.
The company stated that 10 of the vessels will be built by China State Shipbuilding Corporation subsidiaries Shanghai Waigaoqiao Shipbuilding and China Shipbuilding Trading for an aggregate contract price of CNY5.28 billion ($780 million), exclusive of tax.
Under the second contract, Nantong Xiangyu Shipbuilding and Offshore Engineering and Xiamen XMXYG Shipbuilding Trading will construct the remaining five bulk carriers for CNY2.64 billion, exclusive of tax.
Deliveries for the 15 vessels are expected between May 2030 and December 2030, with funding sourced 25 per cent from internal resources and 75 per cent from bank borrowings and external debt financing.
Following delivery, Hainan COSCO Shipping Development Ocean Transport will lease all 15 vessels to Wai Fung Shipping under 20-year time charter arrangements. The company reported that the expected maximum annual rent for each bulk carrier will be CNY59.4 million, exclusive of tax.
COSCO Shipping Development stated that the transactions will expand its vessel leasing business and provide stable long-term income and cash flow.
