JP Lease Products & Services Co., Ltd. arranges the operating leases for shipping container, which is one of the methods adopted by shipping companies and container leasing companies for procuring shipping containers.
(Main schemes)
- JOLCO*1, a 100% financing transaction that mainly combines borrowing from financial institutions and equity investment via Tokumei Kumiai
- Arrangement of operating leases for shipping containers, such as JOL*2
(In collaboration with partner companies, we have built a system that enables us to accept redelivered containers at ports around the world).
JP Lease Products & Services Co., Ltd. will provide a one-stop service for building strategy shipping and other companies, covering areas including financing, cash flow support, and container procurement.
Shipping containers are standardized by ISO. They are assets with a relatively low risk of becoming obsolete thanks to technological innovation. For this reason, the container leasing business is expected to generate stable profits over the medium/long term, and has been attracting attention as an attractive investment project in Europe and the U.S. since the 1980s. Amid the modal shift to container transportation and the full-scale introduction of ultra-large container ships, container demand is expected to increase further going forward.
- *1
- JOLCO (Japanese Operating Lease with call option)
JOLCO is an operating lease which gives the lessee an option to purchase the asset at the end of the lease, or at some point during the lease period, at the purchase price determined at the commencement of the lease.
- *2
- JOL (Japanese Operating Lease)
JOL is an operating lease funded by the equity investment from Japanese investor(s) and non-recourse debt from financial institution(s). This structure is used mainly in the aviation industry to provide airlines with 100% financing of aircraft. The lease rates are competitive and attractive for airlines. The equity investor(s) will enjoy tax benefits from the JOL structure and is exposed to the residual value risk at the end of the lease. Therefore, the JOL should be structured by the experts of aircraft leasing in order to minimize the residual value risk.
Origination
JP Lease Products & Services Co., Ltd. has a wealth of knowledge and networks built from 2013 to the present. Experienced Japanese employees propose the best financing plans for shipping companies and container leasing companies.
(Main schemes)
- JOLCO*1, which is a 100% financing transaction
- Operating leases such as JOL*2
Financing
JP Lease Products & Services Co., Ltd. has a global network of financial institutions as debt providers and a network of excellent small/mid-sized corporate investors in Japan as equity investors. We utilize these networks to support financing in the procurement of shipping containers.
Lease Management
JP Lease Products & Services Co., Ltd. manages leased assets and funds during the lease period.
In order to fully grasp the locations and status of a large number of containers and thus manage assets appropriately, it is necessary to have personnel with abundant experience and also have appropriate systems in place.
We have built such a system in collaboration with partner companies.
Exit
JP Lease Products & Services Co., Ltd. has built a network that accepts redelivered containers at ports around the world in collaboration with partner companies.
Through this network, we have achieved a system comparable to that of a container leasing companies.
