Okeanis Eco Tankers takes VLCCs out of Chinese leases
Okeanis Eco Tankers Exits Chinese Leases for VLCCs
Okeanis Eco Tankers is making a strategic move by withdrawing its three youngest Very Large Crude Carriers (VLCCs) from leases in China. The company, which operates a fleet that includes six suezmaxes and eight VLCCs, has opted for purchase options on the Nissos Anafi (built in 2020), and the more recent Nissos Kea and Nissos Nikouria (both built in 2022). This decision marks a significant shift in the company’s leasing strategy as it seeks to capitalize on favorable financing conditions.
Financing and Future Plans
All three vessels were previously involved in sale and leaseback agreements with CMB Financial Leasing. The leasing arrangements for the younger vessels began in 2022 and were updated in early 2024, coinciding with the leaseback agreement for the Nissos Anafi. In a bid to support the buyback of these vessels, Okeanis Eco Tankers has secured $130 million in financing from a prominent Greek bank, specifically for the Nissos Nikouria and Nissos Anafi.
This new loan, backed by the two VLCCs, is structured to mature over seven years and features an interest rate of Term SOFR plus 140 basis points. The repayment plan includes quarterly installments of $1.9 million for both ships, along with balloon payments totaling $76.8 million at the end of the loan term. Iraklis Sbarounis, the chief finance officer of Okeanis Eco Tankers, commented on the financing, stating that the vessels will benefit from some of the most competitive terms available within their fleet. He emphasized that this financial maneuver aims to enhance the company’s resilience against geopolitical uncertainties and rising costs in the industry.
