Arkas Group, Turkey’s largest container ship owner, to partner on six new container vessels
Posted on: 10 September 2024
Global law firm Reed Smith advised CIMC Financial Leasing Shenzhen Qianhai in a landmark lease financing arrangement for six new container vessels in partnership with Arkas Group, Turkey’s largest container ship owner.
This significant financing package includes six eco-design panamax container ships, each with a capacity of 4,300 TEU (twenty-foot equivalent unit) constructed by CSSC Group’s Huangpu Wenchong Shipyard. With a valuation of $60 million per vessel, this transaction totals $360 million. Most of the funding will be bankrolled by CIMC Financial Leasing Shenzhen Qianhai through a carefully structured long-term financing lease arrangement.
Lianjun Li, Hong Kong-based partner at Reed Smith, said: “The ambitious project not only signifies the first collaboration between Arkas and CIMC but also highlights Reed Smith’s team’s expertise in navigating complex financing solutions within the maritime industry.
“The Reed Smith team drafted this complex financing lease agreement, ensuring that it met the unique needs of all parties involved while navigating the intricacies of asset financing. As we move forward, we look forward to exploring further opportunities that will strengthen our partnerships with CIMC Financial Leasing Shenzhen Qianhai and enhance service delivery in the ever-evolving landscape of the maritime industry.”
The Reed Smith Hong Kong team advising on this transaction was led by partner Lianjun Li, supported by counsel Crystal Li, senior registered foreign lawyers Adele Zhang and Dongchen Shi, and associates Athena Lo.