Sumitomo Mitsui Finance and Leasing (SMFL) Group has announced its entry into the time charter (TC) shipping business. On 16 December 2024, the company revealed that it had acquired shares in two special purpose companies (SPCs) that own liquefied natural gas (LNG) vessels. The acquisition was carried out via its strategic subsidiary, SMFL MIRAI Partners.
Photo courtesy= SMFL
The transaction marks a significant shift for SMFL’s maritime leasing operations, which have traditionally been limited to bareboat chartering (BBC). By branching into time charters, SMFL aims to diversify its ship finance offerings to meet a broader range of industry needs.
“We aim to actively contribute to the decarbonisation of the maritime industry through our time charter operations at SMFL MIRAI Partners, fostering sustainable growth and development across the sector,” said Atsushi Sakai, General Manager of SMFL’s Maritime and Logistics Asset Business Department.
The acquisition involves shares previously held by Mitsubishi Corporation in two SPCs that own LNG carriers, DIAMOND GAS ORCHID and DIAMOND GAS ROSE. Built in 2018 by Mitsubishi Heavy Industries, the vessels feature dual-fuel engines running on LNG and an innovative “Sayaringo” tank design to minimise air resistance and reduce greenhouse gas emissions.
Both ships are currently deployed in LNG transportation, including projects associated with the Cameron LNG terminal in Louisiana, a joint venture between Mitsubishi Corporation and NYK Line.
Completion of the share transfer remains subject to regulatory approval, with the process expected to conclude by year-end. While financial details and post-acquisition ownership ratios have not been disclosed, SMFL highlights the strategic value of the transaction.
Broadening Ship Finance Solutions
As a leasing company jointly owned by Sumitomo Mitsui Financial Group and Sumitomo Corporation, SMFL has historically operated under constraints imposed by Japanese banking regulations, limiting its maritime business to BBC arrangements. By leveraging its subsidiary SMFL MIRAI Partners, which operates outside these restrictions, SMFL is now able to expand into TC operations, strengthening its equity finance offerings.
The maritime finance market typically encompasses debt finance, where loans are provided to shipowners, and equity finance, which involves leasing and direct investment in vessel ownership. The latter, including BBC and TC arrangements, allows firms to better navigate intense competition in the ship loan sector from financial institutions in Japan, Europe, and China.
SMFL plans to maintain its ship loan business while focusing on growth in equity finance through an integrated approach to BBC and TC operations.
Commitment to Decarbonisation
The acquisition also underscores SMFL’s commitment to advancing environmental sustainability in shipping. As the only leasing company globally to participate in the Poseidon Principles – an international framework promoting decarbonisation in maritime finance – SMFL continues to champion green shipping initiatives.
To date, the company has supported decarbonisation through sustainability-linked leases and investments in eco-friendly vessel leasing ventures. With its entry into the TC sector, SMFL MIRAI Partners intends to extend these efforts, targeting a range of environmentally sustainable vessel types.
Future projects will include LNG and LPG carriers, offshore wind support vessels, and ships designed for next-generation energy transportation such as hydrogen, ammonia, and liquefied CO2, aligning with SMFL’s vision for a decarbonised global economy.
〆三井住友ファイナンス＆リース（SMFL）グループは定期用船事業に参入する。LNG船2隻のSPCの株式を取得する。
三井住友ファイナンス&リース（Sumitomo Mitsui Finance and Leasing、SMFL）は2024年12月16日、戦略子会社SMFLみらいパートナーズ（SMFL MIRAI Partners）を通じて船舶の定期用船（TC）事業に参入したと発表した。第1号案件として日本郵船(NYK)と三菱商事（Mitsubishi Corporation）が出資するLNG（液化天然ガス）船2隻の保有SPC（特別目的会社）会社２社の株式の一部を三菱商事から取得する。SMFLグループの船舶リース事業は従来、BBC（裸用船）に限定されていた。今回、初のTCに進出することで、より幅広い船舶ファイナンスニーズに対応可能な体制を整える。
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