FSL Trust agrees sale and leaseback for LR2 newbuild pair

Singapore-based business trust First Ship Lease Trust (FSL Trust) has secured a sale and leaseback deal for its two LR2 product tanker newbuilds.

Illustration. Image by Kees Torn/Flickr under CC BY-SA 2.0 license

As informed, FSL Trust has accepted an offer from an undisclosed Chinese leasing company after considering several financing options, including bank financing.

The two 114,000 dwt scrubber-fitted tankers are currently under construction at COSCO Shipping Heavy Industry (Yangzhou) shipyard. They were acquired by FSL in 2018 as part of a resale deal.

Related Article

Subject to definitive documentation being entered into between the parties, FSL Trust will receive an aggregate amount of $58.56 million to be used to finance the remaining payments to the shipyard under the relevant shipbuilding contracts.

According to FSL Trust, the lease term will be ten years from the delivery of the new vessels with a purchase obligation at the end of the lease term.

Last month, the trust also completed the sale of the remaining three containerships in its fleet and exited the boxship sector.