NDB has approved a loan to Bank of Communications Financial Leasing Co. Ltd. (“BCFL”) to acquire at least three large scale LNG carriers powered by the low-pressure dual-fuel propulsion system with capacity to transport 174 thousand m3 of LNG each. LNG carriers will meet all necessary environmental and safety standards of the International Maritime Organization.

The Project will add new LNG transportation capacity for import of LNG to China. The Project is primarily aligned with SDG 7 to ensure access to affordable, reliable, sustainable and modern energy for all. The Project also indirectly contributes to Greenhouse Gas emissions reduction which will be achieved via supply of LNG for domestic consumption and substitution of coal, thereby in line with SDG 13 “Climate Action”.

NDB loan will be provided to BCFL. BCFL will be the lessor of the vessels with lessees being ultimately majority owned by Chinese LNG importers.

The Project has been categorized as Category FI-B in line with NDB’s Environment and Social Framework. BCFL has established an Environmental and Social Management System (“ESMS”) to assess and manage the E&S impacts and risks. E&S screening, due diligence and monitoring of LNG carriers will be carried out by BCFL’s respective client managers. The potential adverse E&S impacts and risks of the LNG carriers will be managed and mitigated through the application of the BCFL’s ESMS and ensuring compliance with the requirements of the IMO, as well as the implementation of an Environmental and Social Impact Management Plan, agreed upon with NDB.