Denmark-based Hafnia Tankers has completed its first sale and leaseback transaction in the Japanese market involving the company’s LR1 tanker, MT Hafnia Africa.
As informed, the 74,500 dwt vessel has been sold to “a large Japanese private ship owning company” with an 8-year bareboat charter back with annual purchase options from year four onwards.
The company has an option to extend the lease to 12 years, according to Hafnia.
“The transaction entailed a sale of the vessel at market value and a fully levered lease arrangement which gives rise to a positive liquidity effect of approx. USD 8.5 million and further adds to the already strong cash position. The profile of the lease arrangement allows the company to abide by its strict policy of maintaining a low cash-breakeven,” the company said in a statement.
Following the completion of the transaction, the vessel has been delivered to an unnamed owner.
Built at STX Offshore shipyard in South Korea in 2010, Hafnia Africa currently has a market value of USD 23.03 million, VesselsValue’s data shows.