Monaco-based shipowner Scorpio Tankers has decided to sell and leaseback six MR product tankers to China Huarong Shipping Financial Leasing.

The ships in question are STI Opera, STI Virtus, STI Venere, STI Aqua, STI Dama, and STI Regina.

As explained, the lease financing arrangements are part of the company's new financing initiatives that were announced in April 2018.

As part of the agreements, the company will bareboat charter-in the vessels for a period of eight years. Additionally, the company has purchased options beginning at the end of the third year of each agreement. There is also a purchase obligation for each vessel upon the expiration of each agreement.

Upon completion, the company's liquidity is expected to rise by USD 48 million in aggregate after the repayment of outstanding debt.

These lease financing arrangements are subject to customary conditions precedent and the execution of definitive documentation, according to Scorpio Tankers.

Earlier in May, Scorpio Tankers also inked sale and leaseback deals for three MR and two LR2 product tankers.