15 vessels in a row! Dalian Shipbuilding Industry Co., Ltd. receives another order for bulk carriers from a new shipowner.

Following the initial order of 10 large vessels in March this year, CITIC Financial Leasing continues to expand its investment in ships, adding another 5 bulk carriers to its order with CSSC.

According to TradeWinds, CITIC Financial Leasing has confirmed the execution of an option order, ordering another 5 65,000-dwt Ultramax bulk carriers, increasing its number of new ships under construction at CSSC to 15. Like the previous 10, these 5 new vessels will be leased to domestic shipping companies for coastal trade.

These vessels will be built by CSSC's affiliated shipyard, Shanghai Waigaoqiao Shipbuilding, with plans for delivery between 2024 and 2025. Industry insiders estimate that each bulk carrier costs approximately RMB 200 million (approximately USD 31.5 million) for CITIC Financial Leasing. Including the latest 5, the total contract value is as high as RMB 3 billion.

It is understood that CITIC Financial Leasing initially signed a contract with CSSC on March 29 for the construction of 10 65,000-dwt bulk carriers, marking the company's first time ordering new ships under an operating lease model.

This type of vessel adopts a new generation of ship designs independently developed by Shanghai Merchant Ship Design & Research Institute under China Shipbuilding Group. It has an overall length of approximately 209.95 meters, a molded breadth of 34.8 meters, a molded depth of 18.0 meters, a design draft of 11.70 meters, and is equipped with energy-saving ducts and other devices. Its fuel consumption per nautical mile is significantly better than similar vessels, its energy efficiency index is 25% lower than the domestic baseline, and its economic performance is outstanding. At the same time, this type of vessel also uses a new type of low-wind-resistance superstructure, with a significant drag reduction effect during sea voyages, and has energy-saving and environmentally friendly performance advantages. In addition, according to the rating of "Main Performance Level Rating of Sea Transport Vessels" (CB/T 3886-2002), this type of vessel has excellent performance among similar vessels in the market and has achieved a special grade.

This type of vessel can navigate in domestic near-sea areas and various ports below Nanjing on the Yangtze River. It can maximize cargo capacity in water-restricted channels, and its cargo hold has a large capacity, which can meet the needs of most bulk cargoes. After completion and delivery, these vessels will be leased to first-class domestic shipping companies to serve the transportation guarantee of national resources and energy, mainly operating domestic coastal routes and along the Yangtze River.

CITIC Financial Leasing Co., Ltd., established in 2015, is an important strategic layout of CITIC Group and CITIC Bank serving the real economy. As a wholly-owned subsidiary of CITIC Bank, CITIC Financial Leasing adheres to the development strategy of "professionalization, marketization, and internationalization", focusing on financing leasing business in major fields such as clean energy, energy-saving and environmental protection facilities, high-end equipment manufacturing, and people's livelihood. Since 2021, CITIC Financial Leasing has vigorously promoted the transformation of its "limited diversification" strategy. On the basis of consolidating its characteristic advantages in green leasing, it has comprehensively expanded from traditional leasing businesses such as ships and aircraft, and emerging businesses such as inclusive finance and healthcare, striving to create a business combination model of "one large, one small, and stable in the middle".

In 2021, CITIC Financial Leasing achieved its first container ship financing lease, its first ship financing lease project, and its first delivery of ship operating lease assets, and the initial results of the shipping financial leasing sector are showing.

In August this year, CITIC Financial Leasing was approved to establish a project company (SPV), which means that the company can now establish project companies in domestic bonded areas, free trade zones, and free trade ports to conduct financing leasing business in RMB and foreign currencies in fields such as aircraft, ships, vehicles, containers, and construction machinery, creating favorable conditions for the company's business model transformation and marking an important step in the company's professional and international development.

CITIC Leasing will take this approval to establish a project company as an opportunity to seize the momentum, focus on risk mitigation and asset operation management of leased assets such as ships, aircraft, and vehicles, and accelerate the transformation of the company's business model from financing-based quasi-credit business to asset-based true leasing business.