New Development Bank (NDB) has approved a 5 billion yuan (702.48 million) loan  to Bank of Communications Financial Leasing (BCFL). 

The loan will be used by BCFL to acquire at least three liquified natural gas carriers to address the significant increase in demand for LNG in China and help close the demand-supply gap in LNG carrier capacity.

BCFL, a leading financial leasing company in China, is fully owned by Bank of Communications (BoCom). NDB says the transaction further cements its long-term strategic relationship BoCom.

The loan will help BCFL to expand its green leasing portfolio. For China,  the LNG imports will contribute towards reducing its coal consumption and related greenhouse gas (GHG) emissions in alignment with the government’s 2030 Agenda for Sustainable Development.

The latest batch of LNG carriers BCFL is buying will be equipped with advanced propulsion systems, representing a significant improvement in the shipping industry in terms of efficiency, economies of scale and environmental performance.

The project is aligned with the United Nations‘ Sustainable Development Goal 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all. By supporting the transportation of LNG to China, the project also contributes to the reduction of local pollutant emissions by replacing regional coal consumption, thereby aligning with SDG 13 – climate action.

During its annual meeting on August 30, held in Cape Town, the Shanghai-headquartered NDB, formerly known as the BRICS Development Bank, also signed a loan agreement amounting to 5 billion rand (US$279.78 million) with Transnet, South Africa’s leading freight transport and logistics company.

The funding will support the modernization and improvement of the country’s freight rail sector. The programme includes rail network infrastructure renewal, locomotive overhauls, and wagon fleet renewal. It aims to restore South Africa’s freight rail volumes, improve the sector’s operational performance and reliability, and contribute to a sustainable future.