Navig8 inks sale and leaseback deal for chemical tankers

Norway-listed tanker company Navig8 Chemical Tankers has entered into sale and leaseback agreements with Chinese Jiangsu Financial Leasing (JFL) for four chemical tankers.

As informed, the four vessels include two 25,000 dwt stainless steel chemical tankers and two 49,000 dwt IMO2 chemical tankers.

The two 25,000 dwt stainless steel chemical tankers or the S-class vessels were delivered to JFL on 23 June 2021.

Furthermore, one of the two 49,000 dwt IMO2 chemical tankers or V-class vessels was delivered on 25 June 2021, and the other one on 29 June 2021.

According to Navig8 Chemical Tankers, the company has raised $100m through this agreement. A portion of these proceeds was used to repay the bank loan facilities.

What is more, the company has entered into long-term charter agreements with JFL, which include purchase options to re-acquire the vessels during the charter period. The first such option is exercisable on the third anniversary after the delivery date.

The agreements come with the obligation to repurchase all four vessels from JFL at the end of the charter period.

Currently, Navig8 Chemical Tankers’s fleet, which is contracted to operate in various chemical tanker pools managed by Navig8
Group and Odfjell Tankers, includes 32 vessels.

Navig8 Chemical Tankers Inc. was established in 2013 as a joint venture between Navig8 Group and funds managed by Oaktree Capital Management to capitalize on significant structural changes in the petrochemical industry and the continuing development of long-haul chemical trades.

Source: World Maritime News