Image:New Development Bank (NDB)
China’s Bank of Communications Financial Leasing Co., Ltd. (BCFL) has secured a $150 million loan from the New Development Bank (NDB) to fund the acquisition of at least three liquefied natural gas (LNG) carriers. The deal, equivalent to RMB 1,069.23 million, aims to bridge China’s growing LNG demand with sufficient carrier capacity.
The agreement marks a significant milestone as the first non-sovereign loan issued by NDB to a non-banking financial institution in China. BCFL, a wholly owned subsidiary of the Bank of Communications (BoCom), has been a key player in China’s financial leasing sector since its founding in 2007. The company specializes in leasing solutions for various industries, including shipping and aviation.
NDB, headquartered in Shanghai, was established by the BRICS nations—Brazil, Russia, India, China, and South Africa—to finance infrastructure and sustainable development projects in emerging markets. The bank signed a memorandum of understanding with BoCom in 2016 to foster a long-term strategic partnership, and this latest loan reaffirms that collaboration.
With China ramping up LNG imports to reduce its reliance on coal, the newly financed LNG carriers will play a critical role in ensuring a stable supply chain. The vessels will be equipped with advanced propulsion systems, improving operational efficiency and reducing greenhouse gas emissions. NDB has emphasized that this initiative aligns with China’s 2030 Agenda for Sustainable Development and its broader goals of peaking carbon dioxide emissions by 2030 and achieving carbon neutrality by 2060.
The loan signing ceremony took place at NDB headquarters on February 21, attended by key executives from both institutions. Among the attendees were Vladimir Kazbekov, NDB vice president and chief operating officer (COO); Jiuyong Yin, vice president of BoCom; and Bin Xu, chairman of BCFL.
Kazbekov highlighted the strategic importance of the deal, stating, “It demonstrates NDB’s dedication to supporting China in reaching a peak in its carbon dioxide emissions before 2030 and achieving carbon neutrality by 2060. This transaction will further strengthen the strategic partnership between NDB and BoCom. The LNG Transportation Project is aligned with NDB’s focus on supporting clean energy and energy efficiency projects as well as the Bank’s commitment to scale up non-sovereign operations.”
China’s LNG sector has been expanding rapidly, driven by policies aimed at curbing coal consumption and reducing air pollution. As demand grows, financing agreements like this will be essential in ensuring the country has the necessary infrastructure to sustain its energy transition. The deal underscores NDB’s role in bolstering sustainable development projects and enhancing local financial markets through strategic funding initiatives.
Source: Shipping Telegraph & (NDB)
