Scorpio seals sale and leaseback of five product tankers

Scorpio seals sale and leaseback of five product tankers

Emanuele Lauro’s Monaco-based Scorpio Tankers has sealed a deal with China’s AVIC International Leasing for the sale and leaseback of five product tankers.

The vessels being sold are MR product tankers STI Ville, STI Fontvieille and STI Brooklyn as well as LR2 product tankers STI Rose and STI Rambla. The vessels will be bareboat chartered back to Scorpio for a period of eight years, with purchase options available from the end of year two onwards. On completion of the charter Scorpio will reaquire the vessels.

Scorpio says the deal will result in $42m of liquidity for the company after the repayment of outstanding debt.

Since announcing the aquisition of Navig8 Product Tankers last May, Scorpio has undertaken a series of measures to improve its finances including a sale and leaseback deal with China’s BoComm for five product tankers last September and arranging a series of new loans worth just under $200m earlier this month.

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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