Singapore-based Norstar Shipping has secured a US$32m senior secured credit facility from New York-headquartered CIT Maritime Finance to acquire a pair of LR1 product tankers.

Chris Bonehill, principal of Norstar Shipping Group, said, "Evolving refinery dynamics favour product tankers, as U.S., Middle Eastern and Indian refinery capacity has increased, and European refinery capacity, burdened by higher costs, continues to decline. Thanks to their deep knowledge of the maritime sector, CIT understood the impact of these trends and quickly arranged a flexible financial solution that allowed us to seize the opportunities we saw in the market."

The terms of the transaction were not disclosed, while CIT said that the financing was provided by CIT Bank, the principal bank subsidiary of CIT.

Currently, Norstar operates a fleet of 19 oil and chemical tankers.