• Home
  • Insights
  • Overview of a Japanese Operating Lease (with call option) in the Shipping sector

09 Oct 2023

Overview of a Japanese Operating Lease (with call option) in the Shipping sector

Linkedin

The Japanese Operating Lease with Call Option or JOLCO has become an increasingly popular source of financing in shipping over recent years. In essence, JOLCO financings are similar to conventional sale and leaseback transactions but benefit from tax advantages that allow the shipowner to reduce its cost of financing due to the tax benefits achieved by the Japanese investors. The combination of this attractive overall cost of capital and the availability of 100% funding make it is easy to see why it is an appealing structure to shipowners. On the other hand, the intricacies of the structure will mean that it is not suitable for every transaction. As such having a working understanding of the JOLCO structure is important in order for shipowners to consider it and diversify their sources of capital.

Click here to read more.

Linkedin

KEY CONTACT

Jon Cripps

Jon Cripps
Partner

T:  +44 20 7809 2992 M:  +44 7824 988383 Email Jon | Vcard Office:  London

Pedram Norton

Pedram Norton
Partner

T:  +65 6622 9651 M:  Email Pedram | Vcard Office:  Singapore

Joanna Katsaouni

Joanna Katsaouni
Associate

T:  +44 20 7809 2004 M:  +44 7436 247 981 Email Joanna | Vcard Office:  London

Yin Ling Ng

Yin Ling Ng
Associate

T:  +65 6622 9644 M:  +65 8163 1252 Email Yin Ling | Vcard Office:  Singapore