Hafnia announced that it has signed a USD 414 million Sale and Leaseback Facility on 28 February 2022 with ICBC Financial Leasing Co., Ltd. (“ICBCL”).

Proceeds from the Facility will be used to finance the transaction. The 12 LR1 vessels will be renamed to “Hafnia Excel”, “Hafnia Excelsior”, “Hafnia Expedite”, “Hafnia Exceed”, “Hafnia Experience”, “Hafnia Executive”, “Hafnia Excellence”, “Hafnia Express”, “Hafnia Pride”, “Hafnia Providence”, “Hafnia Precision” and “Hafnia Prestige” upon delivery and to be commercially managed by the Hafnia LR Pool.

The first vessel is expected to be delivered in early March. Upon delivery, the Company will bareboat charter-in the Vessels for a period of 10 years and will have monthly purchase options to maximise trading flexibility. There is a purchase obligation upon expiry of each agreement. The remaining terms and conditions of this Facility including financial covenants are similar to existing financing arrangements.

“We are very pleased to have been involved in this landmark project and to have cooperated with Hafnia, the world’s leading product tanker company. We would like to extend our gratitude to the Hafnia team for their dilligence and expertise. We are ready to go further together.” says ICBCL’s Head of Shipping Finance Peter Zhao.

“We truly appreciate the commitment ICBCL has demonstrated to Hafnia by closing this financing at unprecedented speed to be able to take timely delivery of the Vessels. We look forward to the smooth completion of this financing in strong collaboration with the ICBCL team.” says Hafnia’s CFO Perry van Echtelt.