PRC leasing has become mainstream following the departure of a number of key lenders from the shipping finance space. In one sense this is a new capital for shipowners as Chinese lessors have developed their sale and leaseback product with the assistance of English lawyers versed in operating and finance leasing during the last 8 years or so but in another sense this source of capital is not a new product. Rather it is an evolution of tax and non-tax leasing under English law that has existed for many years in shipping finance. Further PRC leasing houses typically view leases as "financing" and much of the charter or lease contains classic loan facility wording (representations, covenants and events of default/termination events for example) that will be familiar to charterers who have hitherto financed their vessels using debt finance.

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