Grindrod Shipping seals handysize sale and leaseback

Grindrod Shipping seals handysize sale and leaseback

Nasdaq-listed Grindrod Shipping has sealed a sale and leaseback transaction with a Japanese shipowner for 2010-built 33,100 dwt handysize drybulk carrier IVS Knot.

The vessel was sold for $13m and the company will bareboat charter the vessel back for a period of up to 11 years, with the right to acquire the vessel from the end of the second year of the charter.

In the meantime, the company took delivery of ultramax bulker newbuilding IVS Phoenix, which has been chartered-in for a minimum period of three years with options to extend for up to two additional years.

“We are delighted to have recently taken delivery of the IVS Phoenix and concluding the sale and leaseback of the IVS Knot, which represents a new source of funding for the Company. The sale and leaseback transaction adds a new dimension to our longstanding relationship and status within the Japanese market and we believe this affords the Company the potential to leverage this further.  Through the IVS Knot and the sale of the joint venture loan Grindrod Shipping has strengthened its liquidity by approximately $13.8 million without divesting control of any core assets,” said Martyn Wade, CEO of the company.

Additionally, Grindrod Shipping and its joint venture partners agreed to the further extension of the termination date of the IVS Bulk joint venture from June 30 to September 30.  The company said it remains in discussions with its joint venture partners regarding strategic alternatives for IVS Bulk.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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