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Scorpio Tankers Signs Sale, Leaseback for Six More MRs

  • Business & Finance

Monaco-based shipowner Scorpio Tankers has reached an agreement to sell and leaseback six MR product tankers to CMB Financial Leasing.

The units in question are STI Battery, STI Milwaukee, STI Tribeca, STI Bronx, STI Manhattan, and STI Seneca.

Upon completion, the company said that it expects its liquidity to increase by USD 52 million in aggregate after the repayment of outstanding debt.

Under the deals, Scorpio Tankers will bareboat charter-in the vessels for a period of eight years. In addition, the company has purchase options beginning at the start of the fourth year of each agreement. There is also a purchase obligation for each vessel upon the expiration of each agreement.

The lease financing arrangements are part of the company’s new financing initiatives that were announced on April 25, 2018.

In late May 2018, the shipowner signed sale and leaseback contracts for another six MR product tankers.

Under the deals, China Huarong Shipping Financial Leasing was to bareboat charter-in the vessels, including STI Opera, STI Virtus, STI Venere, STI Aqua, STI Dama, and STI Regina, for a period of eight years.

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