Seacon Shipping Group Holdings has provided a guarantee for a finance lease arrangement involving a 49,400 DWT chemical tanker vessel. This guarantee supports the performance obligations of Golden Bauhinia, an associate company of the shipping group, in favour of Tianjin Jinhaishiba Leasing Company.
Under the transaction documents, the charterer entered into a financial lease with the owner for a principal sum not exceeding $39.1 million. Seacon Shipping stated its liability under the charter guarantee, "shall not exceed 50 per cent of the principal sum", representing $19.55 million.
The company said its aggregate obligations are proportional to its indirect interest in Golden Bauhinia. Huanghai Shipping Company also executed a guarantee for the remaining 50 per cent of the principal sum under similar terms.
Golden Bauhinia is a Liberian company wholly owned by GHC Shipping Company, which is a joint venture between Seacon Shipping and Huanghai Shipping Company.
The group reported that the arrangement enables the charterer to obtain financing for vessel acquisitions and additional working capital.
This transaction follows a previous charter guarantee entered into by the group on February 12. Because both guarantees were made within a 12-month period with subsidiaries of Agricultural Bank of China, the latest agreement has been aggregated for reporting purposes.