CSSC Hong Kong Shipping has secured a sale and leaseback agreement for an ammonia carrier through its wholly-owned special purpose vehicle, Fortune VLAC I.
The subsidiary agreed to acquire the vessel from Singaporean marine transport provider Jal Pari before leasing it back to the seller for a 120-month period.
Under the terms of the transaction, Fortune VLAC I will purchase the vessel for a consideration of $99.185 million which is subject to adjustment based on the shipbuilding contract.
The estimated charter hire payable by Jal Pari over the lease term is $141.68 million, a figure that includes approximately $42 million in estimated lease interest.
According to the company announcement, the vessel is a 93,000-cubic metre very large ammonia carrier valued at $119.5 million, representing its contract shipbuilding price.
Delivery of the vessel is expected by CSSC Shipping to occur by September 2027, with funding for the purchase coming from internal resources and bank loans.
To secure the charter payments, Jaldhi Overseas and Kumud Holdings will provide two deeds of guarantee and indemnity in favour of the buyer. Both guaranteeing entities and the charterer are ultimately owned by Vira Chand Bothra, according to the filing.
