Singapore´s Yangzijiang Financial Holding has announced that Yangzijiang Maritime Private Equity Fund, a sub-fund being managed by Yangzijiang Financial’s wholly owned subsidiary GEM Asset Management, has invested in two chemical and product tanker projects, and entered into agreement to co-charter for eight eco medium range chemical and product tankers.
The Fund has invested in RT Star, a 26,199-dwt stainless steel chemical and product tanker, with a subscribed investment amount of US$19.5 million and to 19,999 dwt OM Shanghai with a subscribed investment amount of US$12.64 million.
The company said the Fund co-owns RT Star together with a Shanghai-based tanker specialist owner/operator and co-owns OM Shanghai together with a Singapore-based owner/operator.
Meanwhile, the Fund has sealed a co-chartering deal for eight eco MR chemical and product tankers with an international tanker charterer for a period of less than a year for each vessel.
The Fund together with the charterer plan to secure time charters for the first time charter trip of the charter period, and hedge against weak summer months by entering into forward freight agreements, in order to protect “the fund’s earnings and ensure that it benefits from the expected improvement in MR tanker charter rates,” as the company claims.
This move is an optimistic bet on the future of the MR tanker market, which has consistently delivered good returns to owners since 2022, in accordance with the company.
To date, the Maritime Fund has closed a total of 12 deals committed US$178.8 million in funding and has invested a sum of US$82.8 million.
Mr. Vincent Toe, the CEO of Yangzijiang Financial, said: “The Group is uniquely positioned to manage the Maritime Fund, which is guided by Chairman Ren Yuanlin, who has 40 years of experience in investments in the maritime sector, and is the single largest shareholder of the largest non-state-owned shipyard in China.”
He also added that “with capital commitments of US$500 million, we are well on our way to achieving our goal of transitioning Yangzijiang Financial into a full-fledged asset manager.”
