Forescue deal sparks warning on loan risk

摘要

Leasing companies in China are accepting big risks by financing commodity ship newbuildings that in some cases exceed the estimated value of the vessels in question, analysts have noted. The issue was highlighted when Fortescue Metal Group, the Australian mining company, said last month that it had financed its eight very large ore carrier (VLOC) newbuildings being built in China - four of them at CSSC Guangzhou and four at Jiangsu Yangzi - with China Development Bank Financial Leasing (CDBFL).