Shipping Finance Development of Leading Chinese Leasing ...forums.capitallink.com/shipping/2019greece/ppt/wang.pdfFeb 22, 2019  · LEASING CMB LEASING MINSHENG LEASING CDB LEASING

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Shipping Finance Development of Leading

Chinese Leasing Companies

22 Feb 2019

By Bank of Communications Financial Leasing

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Role of Chinese Financial Leasing in Shipping

2

Agenda

Brief introduction of Leading Chinese Leasing Companies

Rapid Development of Chinese Shipping Leasing

Outlook of Chinese Leasing Companies

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History of Chinese Leasing Companies 1.1

3

Year 2007, the first 5 Financial Leasing

companies established in China, all with bank

background.

Year 2018, the figure for Financial Leasing

Company is 69.

8 financial leasing companies assets over 100 bn

RMB.

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Total assets

Leased assets

(RMBm)

(RMBm)

Sustainable growth with a progressive momentum

1.2

4

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

2,008 7,865 15,291 30,757

46,721 70,795

91,196 113,842

144,383

179,761 207,243

231,743 2007-2018 CAGR: 54%

126 7,781 15,285 30,042

44,927 69,408

89,144 110,501

139,591 166,061

200,002 220,407

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

2007-2018 CAGR: 97.2%

Fast growing asset scale of Bocomm Leasing

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Bocomm Leasing is in the top rank by major indicators

Ranking top among the financial leasing industry in terms of main metrics1, 2

Total assets RMB231.7 bn No. 2 Leased assets RMB220.4 bn No. 2

Operating lease assets RMB104.5 bn No. 2 NPA ratio 0.66% No. 1

Wholly-owned subsidiary of Bank of Communications

Incorporated since December 2007

Among the first batch of five pilot financial leasing companies in China

Registered capital amounting to RMB8.5bn

1.3

5 Note: 1. source as of Dec 2018 2. The industry universe consists of eight Chinese financial leasing companies with total assets over RMB100bn as of Dec2018

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Preferable industries for financial leasing companies 1.4

6

Aviation

Shipping

Automobile

Infrastructure

Medical, Manufacture Equipment

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Industry: water supply, gas

supply, sewage treatment,

public transportation, culture

and tourism, etc.

Communicate and cooperate

with companies in water

supply, public transportation,

gas supply, heating supply, and

rail transit sectors in large

provincial capitals and major

tier one and tier two cities

Clients: sizeable professional

infrastructure enterprises such

as CRECG, CCCC, Shanghai

Metro, Nanjing Metro, Shaanxi

Water Group, Beijing

OriginWater Technology,

Taiyuan Heating Power Co.,

Shenzhen Bus Group, Tianjin

Binda Gas Enterprises

Company, etc.

Industry: coal, electricity, oil

and gas as four pillars,

supplemented by other new

energy industries

Raise entry threshold in

traditional energy industries

and strengthen support to new

energy industries and industrial

upgrading; Support domestic

and foreign projects that fit

national industrial policy and

economic transformation and

upgrading principle

Clients: CNCG, Datong Coal

Mine Group, China Guodian

Corporation, China Huadian

Corporation, CNOOC and

other large state-owned energy

companies

Promote business in high-end

equipment manufacturing and

cross-border leasing for large

equipment; Support holistic

strategies of Chinese

manufacturing industry to “Go

Global” and international

cooperation on production

capability

Industry: engineering

machineries, heavy trucks,

buses, agricultural machineries,

and large complete set

equipment

Industry leading in terms of

product diversification, sector

coverage, and number of

cooperative manufacturers

Clients: XCMG, FAW Jiefang,

Sinotruk, Shenyang Machine

Tool, Zoomlion, Sany, and

other leading companies in the

industry

Support growth of micro and

small enterprises, and develop a

variety of wholesale and retail

products regarding sublease,

direct lease, and joint lease,

providing efficient channels

and financing solutions to

micro and small enterprises in

the procurement of production

materials and carrying out

operating activities

$/€ USD/EUR business segment ¥ RMB business segment

1.5

Key focus for growth

With 189 aircrafts and 2

managed aircraft, BoComm

Leasing ranked Top 3 in

domestic industry

Set up platform in Ireland to

promote offshore business

The balance of operating lease

assets accounts for c.91%,

among the highest in domestic

industry

53 clients across 20 countries

and regions

Aviation

Key focus for growth

380+ vessels under

management, including

container liners, chemical

tankers, oil tankers, LNG

carriers, bulk carriers, cruise

ships,Ropax etc.

Rank #2 in shipping leasing

business of container liners

globally. Client base covers top

five global container shipping

companies

Set up offshore business

platform in Germany to focus

on exploration of international

markets

Clients are mostly large SOEs

and top global shipping

companies with long operating

history

Shipping Energy equipment Public infrastructure Machinery equipment

7

Five key business segments of Bocomm Leasing

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Role of Chinese Financial Leasing in Shipping

8

Agenda

Brief introduction of Leading Chinese Leasing Companies

Rapid Development of Chinese Shipping Leasing

Outlook of Chinese Leasing Companies

0 55 122

250 138 103

252 237 154

209 209 209

160 160 160

180 208 243

88 141 204

216 54 58

9

239 239 239

12 89 147

39 189 215

56 65 71

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192 0 0

56 118 165

72 180 208

113 205 226

77 198 219

2.1

9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

ICBC LEASING BOCOMM

LEASING

CMB LEASING MINSHENG

LEASING

CDB LEASING AVIC LEASING CCB LEASING CSSC LEASING COSCO

LEASING

HUARONG

LEASING

3.2

2.0

1.5 1.2 1.2

1.1 1.0

0.8

0.6 0.6

2.2

3.0

1.7 1.2

0.7 0.7

0.4

1.0

0.2 0.2

2.7 2.9

1.5

1.8

0.8

0.3

0.6

1.0

0.0 0.0

2018

2017

2016

Ship Leasing Drawdown from 2016 to 2018 of Chinese Leading Finance Leasing Companies

$Bn

Data source:SMARINE

Rapid development of shipping finance leasing

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Dominate position of the leading companies 2.2

10

0

2

4

6

8

10

12

14

ICBC

LEASING

BOCOMM

LEASING

MINSHENG

LEASING

CMB

LEASING

COSCO

LEASING

CSSC

LEASING

CDB

LEASING

AVIC

LEASING

CCB

LEASING

OTHERS

12

9.2

6 5.3 5.2

3.2 3.2

2.1 1.7

3.4

10.8

7.7

6.1

4.6 5.5

4.6

2.3 1.7

1.2

2.6

2018 2017

Ship Leasing Assets Value of Chinese Leading Finance Leasing Companies

$Bn

Data source:SMARINE

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2.3 Qualified shipping assets

Portfolio by vessel type Portfolio by geography

Portfolio by structure

Operating

lease, 69%

Finance lease, 31%

Containership

Tanker

Bulker

Gas Carrier

Other

RoRo & Passenger

Source: As per 31 December 2018

RoW, 95% China, 5%

46%

27%

14%

8%

2% 3%

11 Bocomm Leasing Fleet

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77 198 219

Role of Chinese Financial Leasing in Shipping

12

Agenda

Brief introduction of Leading Chinese Leasing Companies

Rapid Development of Chinese Shipping Leasing

Outlook of Chinese Leasing Companies

0 55 122

250 138 103

252 237 154

209 209 209

160 160 160

180 208 243

88 141 204

216 54 58

13

239 239 239

12 89 147

39 189 215

56 65 71

24 60 96

192 0 0

56 118 165

72 180 208

113 205 226

77 198 219

Diversify channel for access to clients 3.1

13

Cooperative

Banks Brokers

Classification Society

Shipyards

Top Tier

Shipowners

Chinese Financial Leasing Companies

Small Size

Shipowners

Medium Size

Shipowners

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3.2

380+ Number of

vessels

40+ Number of

clients

Global clients network

14

Bocomm Leasing Shipping Clients Group

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3.3 Efficient and professional team of Bocomm leasing shipping Dept.

2012 2016 2013-14 2018 2017

A professional and committed team…

Client Relationship Legal Operation

s

Technical Research

12x 2x 4x 2x 1x

…with a demonstrated execution track record

Source: As per 31 December 2018

380+ Number of

vessels

63 billion Portfolio value

RMB

BoCom Financial Leasing Ship

Leasing department was

established with a team of 11

professionals.

First Chinese Lease Co to execute

operating lease financing of

container vessels.

Signed 20 newbuilding

agreements with MSC and CMA

CGM, with a combined value of

USD 2 billion.

Established Hamburg office and became the first Chinese

LeaseCo to establish overseas footprint.

First Chinese Lease Co to establish a co-operation with

Maersk Line.

Signed four Ro-Pax newbuilding contracts with the

leading Ro-Pax company Stena Line.

Expanding the European office

through hire of foreign ship

finance professionals

11 16 17 22 23

Signed 32 tanker newbuilding contracts with the world’s

largest oil and petroleum products trader Trafigura. Total

value amounted to USD 1.35 billion.

Awarded «Best Institution for Shipping Finance in 2016»

by China Maritime Forum

15

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BoComm Shipping Leasing

(Europe) Gmbh

Hamburg

Dublin

BoComm Aviation Leasing

Ireland Company Limited

Hong Kong

BoComm Leasing Management Hong Kong Co., Ltd.

(Shipping assets holding company/offshore Treasury Center)

Shanghai

Group parent company

Specialized subsidiary in Free

Trade Zone

1 Shanghai Free Trade Zone Specialized Subsidiary

3 Offshore Marketing Platforms

1 Offshore Treasury Center

3.4

10

Global operating entities, close to the market

16

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Role of Chinese Financial Leasing in Shipping

17

Agenda

Brief introduction of Leading Chinese Leasing Companies

Rapid Development of Chinese Shipping Leasing

Outlook of Chinese Leasing Companies

0 55 122

250 138 103

252 237 154

209 209 209

160 160 160

180 208 243

88 141 204

216 54 58

18

239 239 239

12 89 147

39 189 215

56 65 71

24 60 96

192 0 0

56 118 165

72 180 208

113 205 226

77 198 219

Role of Chinese financial leasing in shipping 4

18

Keep the market healthy

• More than 50% is “Sales and Lease back”.

Leasing company is not ship owner

• Financed more than 1,600 vessels, only approximately 30 vessels ordered without Charters

Providing more finance options for the market

• Flexible solutions

• Efficient service

• Competitive terms

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77 198 219

Th

an

k y

ou

!

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