Navig8 Chemical Tankers and SBI finalise sale and leaseback deal for two tankers

18 September 2016 (Last Updated September 18th, 2016 18:30)

Global shipping company Navig8 Chemical Tankers has signed a sale and leaseback deal with subsidiaries of Japan-based SBI Holdings (SBI) for two 25,000 deadweight tonnage (DWT) stainless steel chemical tankers.

Global shipping company Navig8 Chemical Tankers has signed a sale and leaseback deal with subsidiaries of Japan-based SBI Holdings (SBI) for two 25,000 deadweight tonnage (DWT) stainless steel chemical tankers.

The vessels are currently being built by Kitanihon Shipbuilding in Japan.

For the deal, Crédit Agricole Corporate and Investment Bank (CA-CIB) is providing debt financing to SBI.

"The vessels, when completed, will be bought by SBI from Navig8."

As part of the newly signed deal, the vessels, when completed, will be bought by SBI from Navig8.

Navig8 has already entered into 11-year bareboat charters for the vessels, beginning at the time of their deliveries.

The company has also bought options to re-acquire the tankers during the charter period, with the first such option exercisable on or around the fifth anniversary of each vessel delivery.

Navig8 will receive net proceeds of $74m from the deal.

Under the new transaction, CA-CIB will also provide debt financing of up to $24,860,540 to reimburse Navig8 in connection with pre-delivery instalments already paid to Kitanihon for the vessels.

The pre-delivery financing is expected to be repaid once Kitanihon delivers the vessels.

Formed in 2013 as a joint venture between Navig8 Group and funds managed by Oaktree Capital Management, Navig8 Chemical Tankers mainly intends to bring structural changes in the petrochemical industry and help continue development of long-haul chemical trades.

So far, the company has received 24 chemical carriers and expects to complete its fleet by mid next year.

Last month, Navig8 Chemical Tankers received a 25,000DWT stainless steel chemical tanker from Kitanihon Shipbuilding.