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Scorpio Tankers seals another sale and leaseback deal

Emanuele Lauro’s Scorpio Tankers has sealed a sale and leaseback deal with China’s CMB Financial Leasing for six product tankers as part of the company’s new financing initiatives.

The deal follows the conclusion of a sale and leaseback deal for six product tankers with China Huarong Shipping Financial Leasing last week.

The six MR product tankers involved in the latest deal are STI Battery, STI Milwaukee, STI Tribeca, STI Bronx, STI Manhattan, and STI Seneca.

Upon completion, the company’s liquidity is expected to increase by $52m in total after the repayment of outstanding debt.

Under the agreement, the company will bareboat charter-in the vessels for a period of eight years. In addition, the company has purchase options beginning at the start of the fourth year of each agreement and there is also a purchase obligation upon the expiration of each agreement.

Earlier last month, Scorpio also sealed a deal with China’s AVIC International Leasing for the sale and leaseback of five product tankers.

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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