Grindrod works its Japanese contacts to net an ultramax

Grindrod Shipping is buying the 2019 Japanese-built ultramax bulk carrier, IVS Phoenix, which it currently charters in from its owners, Sanzo Enterprise, for a price of $23.5m.

The vessel was originally chartered-in for a minimum period of three years from delivery with two one-year extension options and no purchase options. In order to finance the acquisition, Grindrod has simultaneously entered into a financing arrangement with a separate Japanese owner for a gross amount of $25m. As part of the financing arrangement, the group will bareboat charter the vessel back for a period of up to 15 years and has the right, but not the obligation, to acquire the vessel after the first two years of the charter.

The financing would be on similar terms to those completed by Grindrod for IVS Knot, IVS Kinglet and IVS Magpie during 2019 and Matuku in 2020.