(ECNS) -- The New Development Bank (NDB) has signed a $150 million loan agreement with China’s financial leasing company BoCom Leasing in support for the purchase of at least three liquefied natural gas (LNG) carriers. according to NDB on Tuesday.
This move aims to address China's surging LNG demand while narrowing the supply-demand gap in transportation capacity.
This project marks NDB's first non-sovereign loan to a non-bank financial institution in China.
NDB and the Bank of Communications (BOCOM) signed a memorandum of understanding in 2016 to establish a long-term strategic partnership. BoCom Leasing is the wholly-owned subsidiary of BOCOM.
This collaboration further strengthens their ties and demonstrates NDB’s commitment to supporting financial institutions and fostering market development in member countries.
Increasing LNG imports will help reduce China’s coal consumption and greenhouse gas emissions, contributing to the country’s implementation of the 2030 Sustainable Development Agenda.
Vice President of BOCOM, Yin Jiuyong, emphasized that the loan project, highly aligned with China's green and sustainable development strategy, is an important outcome of deepening strategic cooperation between the two sides.
Yin said that as both institutions are headquartered in Shanghai, BOCOM looks forward to expanding cooperation with the NDB in various fields, including financial markets and international business for multi-layered practical collaboration.
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