Hafnia agrees $414m sale and leaseback deal for Scorpio LR1 fleet

BW Group-controlled Hafnia has sealed a $414m sale and leaseback deal with ICBC Financial Leasing to finance the acquisition of 12 LR1 product tankers from Scorpio Tankers.

The first vessel is expected to be delivered in early March. Upon delivery, Hafnia will bareboat charter-in the vessels for a period of 10 years and will have monthly purchase options.

The deal comes with a purchase obligation attached upon the expiry of each agreement. Hafnia said that the remaining terms and conditions of the loan, including financial covenants, are similar to existing financing arrangements.

The 12 LR1 vessels will be renamed upon delivery and be commercially managed by the Hafnia LR pool.