Scorpio Tankers is strengthening its balance with a sale and leaseback deal for five vessels with China’s AVIC International Leasing.
Scorpio Tankers Inc. has entered into a sale-and-leaseback deal with China’s Bank of Communications Financial Leasing (Bocomm Leasing) for five secondhand MR product tankers.
The acquisition of Navig8 Product Tankers will make Scorpio Tankers the world’s third largest tanker owner by fleet value.
China’s financial leasing institutions are stepping up their game in shipping becoming more flexible and competitive in their deal terms compared to traditional bank lendings, according to Western shipowners.
Scorpio Tankers have netted a new $300m loan facility to be used for refinancing.
Scorpio Tankers more than quadrupled net profits in 2015 on the back of a strong tanker market and an enlarged fleet of vessels.
In spite of soaring Q3 profits, Scorpio Tankers has chosen not to exercise options on four MR product tankers, and has received a commitment for a new loan facility.