Photo: Illustration; Image by Offshore Energy

FSL Trust moves forward with the sale of LR2 newbuilding pair

FSL Trust Management, as trustee-manager of First Ship Lease Trust, has executed memoranda of agreement to sell two LR2 product tanker newbuildings.

The vessels FSL Suez and FSL Fos will be sold to an unnamed third party following their deliveries from COSCO Shipping Heavy Industry (Yangzhou).

Based on the information on the company’s website, the 2 tanker newbuildings under construction are expected to be delivered in early 2021.

The ships were bought in December 2018 in a resale deal and Singapore-listed FSL Trust spent $97.2 million on the fleet renewal contract.

Back in September 2020, FSL Trust said it had secured financing for the two 114,000 dwt scrubber-fitted tankers in the form of a sale and leaseback deal with a ‘reputable’ Chinese leasing company.

Under the terms of the deal,  FSL Trust was set to receive an aggregate amount of $58.56 million to be used to finance the remaining payments to the shipyard under the relevant shipbuilding contracts.

“The disposal is made in the ordinary course of business. Details of the net proceeds of the disposal and their utilization will be announced upon completion of the disposal,” the company said.

The announcement is being made on the back of a renewal of bareboat charters for five tankers with James Fisher Everard for period of up to 8 years.

The Singapore-based business has a fleet of 14 tankers of different sizes, including 2 tanker newbuildings under construction.

Of the 12 operating vessels, 9 vessels are chartered to international shipping companies on fixed-rate period charters, whilst the other 3 vessels are employed in pools.