Subsidiaries of CSIC Leasing have acquired four second-hand LR product tankers from subsidiaries of Eletson, a Greek tanker owner, Watson Farley & Williams (WFW) informed.
As disclosed, the sale proceeds from the transaction worth USD 65.5 million have been used to refinance the balloon payment under certain loan facilities of the Eletson group secured on the vessels.
The vessels were then leased back on delivery to Eletson under agreed financial lease arrangements. Additionally, CSIC Leasing provided a working capital loan to Eletson as part of their financing process.
This is CSIC Leasing’s first ever lease financing transaction and a milestone in expanding the company’s shipping portfolio, WFW, which advised on the transaction, said. This is also an important transaction for Eletson as it demonstrates that seeking finance from Asian sources is now a norm for western shipowners, the law firm added.
CSIC Leasing is the financial leasing arm of China Shipbuilding Industry Corporation (CSIC), one of China’s largest shipbuilding and ship repair conglomerates.
“This is a landmark transaction because it shows how a PRC lessor affiliated to a state-owned shipbuilding giant, is able to structure complex financial packages enabling reputable shipowners across the globe to refinance their existing debt whilst at the same time securing its own long-term interests,” Christoforos Bisbikos from the maritime team of WFW Hong Kong commented.