China’s shipowner Seacon Shipping Group Holdings Limited has announced that on January 5 the charterer Seacon Dubai Ltd and the seller Seacon Shipping Pte. Ltd., both of which are indirect wholly-owned subsidiaries of Seacon Shipping Group Holdings Limited, the owner Dawn Shipping, S.A., the company Seacon Shipping Group Holdings Limited and the guarantor – which is a company incorporated in Japan with limited liability, entered into a finance lease arrangement.
Under the agreement, Seacon Shipping Pte. Ltd. agreed to sell the 40,000-dwt bulk carrier under construction to Dawn Shipping, S.A., a company incorporated and existing under the laws of Panama, for a consideration of USD$31,380,000.
Dawn Shipping agreed to charter the vessel to the charterer under the bareboat charter, the company Seacon Shipping Group Holdings Limited entered into the first guarantee in favour of the owner, whilst the guarantor entered into the second guarantee in favour of the charterer and the seller.
The charter period is ten years from the date of delivery of the vessel from the owners to the charterers.
Financial details concerning the sale, the bareboat charter of the vessel and the charter hire were disclosed by the company Seacon Shipping Group Holdings Limited in a filing.
“Subject to the terms of the bareboat charter, with prior written notice, the charterer has the option to purchase the vessel at the applicable purchase option price. Upon the charterer paying the purchase option price, the owner shall transfer title in and to the vessel to the charterer,” the company added in the filing.
The company clarified that the purchase option price is an amount equals to between $17,160,000 and $29,218,680, depending on when the charterer exercises its purchase option to purchase the vessel.
The shipowner Seacon Shipping Group Holdings Limited emphasized the fact that it has historically financed the acquisition of controlled vessels through finance lease arrangement.
The finance lease arrangement will enable the group to obtain financing for the acquisition of the bulk carrier, Seacon said, “which is in line with the ongoing strategy of the group to optimize its vessel fleet by gradually phasing out its older controlled vessels, replacing them with newer vessels and expanding its controlled vessel fleet.”
The company also pointed out that through such fleet optimization, the group will be able to enhance its competitiveness in the maritime shipping industry and to cope with the market demand for its shipping services.
