AsiaFinance and InsuranceTankers

Grindrod Shipping seals sale and leaseback deal for product tanker

Singapore-based Grindrod Shipping has entered into a sale and leaseback transaction with a Japanese leasing house for its 2016-built MR product tanker Matuku.

Under the deal, the company sold the vessel for $26.8m and chartered it back for a period of up to 15 years. It also has the right to buy back to vessel from May 2022.

Grindrod intends to utilise around $9.3m of net proceeds of the refinancing, together with cash on hand, to repay early $10m of a $35.8m credit facility, reducing the company’s net interest expense and remaining scheduled maturities in 2021.

“The sale and leaseback of Matuku is another testament of our ability to leverage our long-standing relationships with leading Japanese industry participants, one of our company’s distinct competitive advantages,” said Martyn Wade, CEO of Grindrod Shipping.

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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