FSL Looking to Order LR2 Tanker Duo in China

FSL Trust Management, the trustee-manager of First Ship Lease Trust, has signed a Letter of Intent for the construction of two scrubber-fitted tankers.

The company is paying USD 97.2 million for the Tier III 114,000 dwt tanker duo, which will be owned by FSLT subsidiaries, FSL-28, Inc. and FSL-29, Inc.

The LOI for the LR2 product tankers, which was agreed with China’s Cosco Shipping Heavy Industry, is subject to parties entering into definitive shipbuilding contracts and is valid until December 20, 2018.

If ordered, the new units would be delivered in November 2020 and January 2021, respectively.

The LOI comes on the back of FSLT’s proposed pro rata, non-renounceable and non-underwritten preferential offering, revealed in late November.

At the time, the company said that 956.2 million of new units in FSLT would be offered at the ratio of three rights units for every two existing units in FSLT, as the company was looking to raise SGD 43.03 million (USD 31.3 million) to finance its fleet renewal move.