Photo: Illustration; Image courtesy: Flickr/Kees Torn

Safe Bulkers invests in another eco-efficient newbuild

Monaco-based bulker owner Safe Bulkers has acquired a Japanese-built Post-Panamax class, 87,000 dwt, eco-efficient newbuild vessel.

The vessel is designed to meet the latest requirements of Energy Efficiency Design Index related to greenhouse gas, EEDI, Phase 3. Once delivered in the third quarter of 2022, it will also comply with the latest NOx emissions regulation, NOx-Tier III.

Separately, Safe Bulkers has secured a new term loan facility of up to 60% post-delivery financing of this acquisition, an increase of the commitment under the existing revolving credit facility from $20 million to $30 million. The loan will have its maturity date extended from 2022, by up to 2 years under the same preexisting financial covenants.

The move is in line with the company’s focus on renewing its fleet with green ships to comply with the ever stringent IMO regulations.

Pursuant to those efforts, in October 2020, the company signed a deal to buy a Japanese-built, Kamsarmax class, 82,000 dwt, newbuild bulker with a scheduled delivery within the first half of 2022.

Safe Bulkers said the vessel is designed to meet the latest requirements of Energy Efficiency Design Index to GHG emissions, and ‘EEDI Phase 3’. It will also comply with the latest NOx emissions regulation, NOx-Tier III.

The bulker owner has also entered into a sale and leaseback through a bareboat charter agreement with a third party for 90% financing of this acquisition.

As informed, the bareboat charter to be consummated upon delivery will have a duration of ten years with a purchase obligation.

“We continue to invest in technologically advanced vessels complying with the latest environmental regulations in an effort to renew our fleet. The company’s capital expenditure requirements for the purchase of this newbuild are being financed through the new financial agreements,” Dr. Loukas Barmparis, President of the company, said.

“Safe Bulkers maintains a strong financial position with liquidity exceeding $167 million, that provides us with the required financial flexibility, and a previously announced at the market equity offering, that may be utilized at stock prices levels and at times that the company deems to be appropriate.’’

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