Belships unlocks cash in sale and leaseback deal for ultramax pair

Norwegian owner Belships has entered into a sale and leaseback deals for two of its ultramax bulk carriers. 

The 2015-built Belforest and the one-year younger Bellight will be on bareboat charters for 11.5 and 10 years, respectively, with options for the Oslo-listed firm to repurchase the vessels at below current market levels.

Delivery into the new bareboat agreements is expected in the first quarter of 2022, with a net cash effect of about $14m.

The lease deals have fixed interest rates with an average cost of about 4.4%, and there are no purchase obligations at the end of the charters. 

Belships has a fleet of 27 supramax and ultramax bulkers, with an average age of below 4 years and an average cash breakeven of about $10,500.