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Singapore-based Grindrod Shipping has entered into a sale and leaseback transaction with a Japanese leasing house for its 2016-built MR product tanker Matuku.
Under the deal, the company sold the vessel for $26.8m and chartered it back for a period of up to 15 years. It also has the right to buy back to vessel from May 2022.
Grindrod intends to utilise around $9.3m of net proceeds of the refinancing, together with cash on hand, to repay early $10m of a $35.8m credit facility, reducing the company’s net interest expense and remaining scheduled maturities in 2021.
“The sale and leaseback of Matuku is another testament of our ability to leverage our long-standing relationships with leading Japanese industry participants, one of our company’s distinct competitive advantages,” said Martyn Wade, CEO of Grindrod Shipping.
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