Danish tanker shipping company Maersk Product Tankers has just entered a sale-and-leaseback agreement for four medium range (MR) vessels with the Chinese bank, Industrial and Commercial Bank of China (ICBC).

The four ships were built in 2015 and 2016 and will be chartered back to Maersk Product Tankers on ten-year bareboat contracts. The company will retain options for the vessels and will still undertake the commercial and technical management for the vessels.

“The agreement will increase financial flexibility and strengthen the financial position of Maersk Product Tankers,” says Morten Mosegaard, Chief Financial Officer at Maersk Product Tankers.

Maersk Product Tankers continues to hold a strong balance sheet. The company further has an attractive newbuilding programme, which was contracted in a market where prices were at a low point in their cycle.

“The sale and leaseback agreement releases significant capital, which gives us additional optionality to act if the right opportunity materialises. This will create further value for our customers, partners and owners,” says Mosegaard.

The first vessel has been delivered to ICBC with the remaining ones to be delivered in the second quarter of 2019.

Maersk Product Tankers owns more than 80 vessels, which are carrying refined oil products worldwide for customers.