Greek tanker owner Eletson has clinched a $65.5m sale and leaseback agreement with CSIC Leasing, the financial leasing unit of shipbuilding giant CSIC.
Under the agreement, CSIC Leasing acquired four secondhand long range product tankers from Eletson, with the sale proceeds being used to refinance the balloon payment under certain loan facilities of the Eletson group secured on the vessels. The vessels were leased backed to Eletson under financial leasing arrangements.
In addition, CSIC Leasing offered a working capital loan to Eletson as part of the refinancing process.
The deal is CSIC Leasing’s first ever lease financing transaction, with law firm Watson Farley & Williams (WFW) advising the company.
“This is a landmark transaction because it shows how a PRC lessor affiliated to a state-owned shipbuilding giant, is able to structure complex financial packages enabling reputable shipowners across the globe to refinance their existing debt whilst at the same time securing its own long term interests,” commented Christoforos Bisbikos, a partner of WFW.