ICBC Financial Leasing

ICBC Financial Leasing, a Chinese leasing company, has commissioned the construction of a kamsarmax bulk carrier from Chengxi Shipyard, also based in China. The vessel, with a deadweight tonnage (DWT) of 82,000, is scheduled for delivery in 2026 from the yard affiliated with China State Shipbuilding Corporation (CSSC). Chengxi Shipyard has recently been quite active, securing over 30 contracts for newbuilds. These contracts include multiple kamsarmax bulk carriers, attracting interest from several Chinese entities like Agricore Shipping and Huaxia Financial Leasing. While the exact cost of ICBC Financial Leasing’s latest order remains undisclosed, shipbrokers are currently estimating a value of over $35 million for similar newbuild tonnage in China. In addition to this new order, ICBC Financial Leasing is managing nine other shipbuilding projects across domestic yards. This includes a significant focus on kamsarmax vessels, with five such carriers being constructed at COSCO Shipping Heavy Industry’s yard in Yangzhou. This flurry of activity underscores ICBC Financial Leasing’s substantial investment in expanding and modernizing its fleet, particularly in the kamsarmax segment. 27-November-2023


ICBC Financial Leasing, a prominent Chinese leasing house, has contracted Chengxi Shipyard, a compatriot shipbuilder, to construct a kamsarmax bulk carrier. According to shipbrokers at Clarksons, this 82,000 dwt vessel is scheduled for delivery from the CSSC-affiliated yard in 2026. Chengxi Shipyard has been notably active recently, securing over 30 new building contracts, including several kamsarmax bulk carriers for Chinese owners like Agricore Shipping and Huaxia Financial Leasing. Although the price for this latest order hasn’t been disclosed, brokers estimate over $35 million for similar new buildings in China. Meanwhile, ICBC Financial Leasing has nine other shipbuilding projects at domestic yards, including five kamsarmax bulk carriers with COSCO Shipping Heavy in Yangzhou. The leasing company, part of the state-owned Industrial and Commercial Bank of China (ICBC), is ambitiously planning to expand its maritime transport portfolio to $20 billion within the next five years. Bill Guo, the executive director of shipping at ICBC Financial Leasing, outlined the company’s balanced approach to growth, aiming for a target that is neither too aggressive nor too modest. With a current portfolio of $12 billion comprising around 300 vessels, ICBC Financial Leasing’s strategy involves serving top industry players without overly focusing on any specific sector. The company’s current fleet mainly consists of container ships, bulk carriers, and LNG carriers, the latter of which has received increased attention due to strong market demand. ICBC Financial Leasing is also exploring opportunities in the LNG and cruise shipping sectors, with the cruise industry gaining popularity in Asia. In terms of environmental responsibility, the company is still assessing its involvement in the Poseidon Principles, an initiative by European and American banks to align their shipping portfolios with the IMO’s decarbonization target. To manage its ambitious expansion with a limited staff size, ICBC Financial Leasing prioritizes working with the top players in each sector, focusing on large or public customers and avoiding single-ship deal owners due to the extensive due diligence required. In line with its growth strategy and Beijing’s Belt and Road Initiative, ICBC Financial Leasing recently opened a representative office in Greece, the world’s largest ship-owning nation. This move aims to serve Greek shipowners better, though the company does not anticipate an immediate boost in its ship finance business from this expansion. 20-November-2021