China´s Seacon Shipping Group Holdings has sealed a transaction and a finance lease arrangement, as announced by Hong Kong exchanges and clearing limited and the stock exchange of Hong Kong.
Seacon Shipping reveals that the charterer, an indirect wholly-owned subsidiary of the company, and the Bank of Beijing Financial Leasing, entered into the finance lease arrangement, to which the charterer agreed to sell a ship to the bank for a consideration of $21,250,000 under the memorandum of agreement.
The Bank has also agreed to charter the vessel to the charterer under the bareboat charter.
The vessel is a 13,500 dwt general cargo ship under construction and is expected to be delivered on or before 26 September 2023.
The amount of $21,250,000 is payable on the delivery date, whilst the price was determined after taking into account the acquisition cost of the vessel.
The charter period is 120 months and commences from the delivery date of the cargo ship.
In the stock exchange filing it is also revealed that there is a purchase option in the arrangement.
“The charterer shall be obliged to purchase the vessel or cause their nominee to purchase the vessel on the date falling 120 months commencing from the delivery date for the purchase obligation price.”
The finance lease arrangement enables the Group to obtain additional working capital as well as financing for the acquisition of vessels, which is in line with the ongoing strategy of the Group to optimize its vessel fleet, by gradually phasing out its older controlled vessels, and replacing them with newer vessels and expand its controlled vessel fleet.
It is worth mentioning that the company has a large and varied fleet of dry bulk carriers. As of 30 June 2023, Seacon Shipping controlled a vessel fleet comprising of 24 vessels.
