COSCO SHIPPING Development to Lease 74 Vessels to COSCO SHIPPING Lines for US$4.62 Billion

December 09, 2020

Hong Kong – Paul Hastings, a leading global law firm, announced today that it has advised COSCO SHIPPING Development Co., Ltd. (Stock Code: 2866.HK and 601866.SH) (“COSCO SHIPPING Development”) on its leasing service agreement with COSCO SHIPPING Lines Co., Ltd. (“COSCO SHIPPING Lines”) in connection with the lease of 74 vessels to COSCO SHIPPING Lines under bareboat charter. The aggregate lease payments payable shall amount to approximately US$4.62 billion.

The Hong Kong and Shanghai-listed COSCO SHIPPING Development is principally engaged in shipping and industry-related leasing businesses, manufacturing of containers and provision of investment and financial services. COSCO SHIPPING Lines, a wholly-owned subsidiary of COSCO SHIPPING Holdings Co., Ltd. (Stock Code: 1919.HK and 601919.SH), is principally engaged in container shipping.

As a long-standing legal partner of COSCO SHIPPING Development, Paul Hastings has represented the company in various transactions. These include COSCO SHIPPING Development’s recent sale of A shares and H shares of CIMC for RMB6.34 billion and acquisition of ten multi-purpose vessels for US$180 million in 2020, its repurchase of A shares and H shares for up to RMB300 million in 2019, as well as the merger between CS Finance, a non-wholly owned subsidiary of COSCO SHIPPING Development, and COSCO Finance in 2018.

The Paul Hastings team was led by Raymond Li, global partner and chair of Greater China, and corporate partner Bonnie Kong, with support from associate Andy Tam and trainee solicitor Beatrice Wun.

At Paul Hastings, our purpose is clear — to help our clients and people navigate new paths to growth. With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings is recognized as one of the world’s most innovative global law firms.