Jinhui frees up capital with double leaseback deal
Jinhui Shipping Boosts Liquidity with Vessel Sales
Jinhui Shipping and Transportation, a prominent player in the Chinese shipping industry, has finalized sale and leaseback agreements that will inject nearly $30 million into its operations. The deals involve two vessels: the ultramax Jin Heng and the kamsarmax Jin Li, sold to Tianjin Jinhaishiwu Leasing and Tianjin Jinhaiba Leasing. This strategic move is designed to enhance the company’s liquidity while retaining operational control over the ships.
Details of the Sales
Under the terms of the agreements, Jinhui has sold the Jin Heng, a 2014-built vessel, for $11.1 million, and the Jin Li, a 2019-built kamsarmax, for $17.2 million. Both transactions are denominated in renminbi and include bareboat charters that span 84 months. Notably, these agreements come with options for Jinhui to repurchase the vessels either throughout the lease term or at the end of the charter period.
Jinhui acquired the Jin Heng in September 2022 from Japan’s Nisshin Shipping for $25.4 million. The Jin Li was purchased earlier this year in February from Vincent Shipping for $31.25 million. With these sales, Jinhui aims to access additional working capital at a competitive cost, thereby bolstering its liquidity while maintaining control over its fleet operations.
This move follows Jinhui’s earlier decision to sell off two older supramax vessels, reflecting the company’s ongoing strategy to optimize its fleet. Currently, Jinhui operates a diversified fleet of about 30 bulkers, positioning itself for continued growth in the shipping industry.
