The ten 2019-built, scrubber-equipped suezmaxes were bought by Frontline from commodities house Trafigura in a deal valued at approximately $675m, with options for an additional four vessels.
The $544m financing from ICBC is to help Frontline cover the cash amount of the Trafigura deal.
“We are very pleased to have secured the financing commitment from ICBCL on highly attractive terms, which marks an important transaction between ICBCL and Frontline. Through this transaction we extend our capital sources at a very attractive capital cost, maintain our industry leading cash break-even rates and maximise potential cash flow per share after debt service,” said Inger M. Klemp, cfo of Frontline.
The leasing financing has a tenor of seven years and includes purchase option for Frontline throughout the period with a purchase obligation at the end.