FSL plans vessels sales to fund newbuild product tanker pair

Singapore’s First Ship Lease Trust (FSL) has signed contracts with Cosco Shipping Heavy Industry for the construction of two scrubber-fitted LR2 product tankers for $97.6m, confirming an LOI signed earlier this month.

In order to fund the acquisition, FSL says that it intends to sell ageing vessels from its fleet to raise up to $21.3m. FSL did not reveal which vessels it intended to sell, and said it had yet to close the proposed sales.

In addition to the funds raised from the disposal, FSL will be using $31m from a preferential offering announced last month to fund the deal. The remaining balance will be funded from existing funds and bank financing.

The newbuild product tankers are scheduled to be delivered in November 2020 and January 2021.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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