China Development Bank Financial Leasing (CDB Leasing) has emerged as the buyer of seven handysize bulkers sold by a company controlled by John Fredriksen.
US-listed SFL Corp announced on Tuesday that it was selling the 32,000-dwt to 34,000-dwt vessels for a total of $100m to an unknown Asian buyer.
Late on Tuesday, Hong Kong-listed CDB Leasing confirmed in a regulatory filing that it had swooped on the vessels.
The ships are the 31,700-dwt SFL Dee (built 2013); the 31,600-dwt SFL Clyde, 33,800-dwt SFL Kent, 34,000-dwt SFL Trent and 31,900-dwt SFL Tyne (all built 2012); and the 33,800-dwt SFL Medway and 34,000-dwt SFL Spey (both built 2011).
All were built in China at either Wenchong Shipyard in Guangzhou or Jiangsu Yangzijiang Shipyard in Jiangyin, according to the SFL Corp fleet list.
CDB Leasing said the acquisition of the ships, which are due to be delivered before year's end, would be financed from its own funds and/or commercial bank loans.
Freight rates for handysize vessels have hit a decade high, spurred by robust demand for commodities, port congestion and fleet inefficiencies.
While the flow of minor bulk commodities has shown strength, extremely high rates to move containers have also contributed.
SFL said the vessels have been employed in the spot market for the past five years, after redelivery from their initial charters.
“The seven small bulkers were redelivered from the initial charters when the market was soft, and instead of divesting the vessels at the time we have waited for improved market conditions,” SFL Management chief executive Ole B Hjertaker said.
“Asset values in the segment are up 75% this year, and we believe this is a good time for a strategic sale of these vessels.”
At the end of 2020, CDB Leasing said it controlled a fleet of 110 vessels comprising 85 vessels under operating leases and 25 under finance leases.
Bulkers account for more than 75% of its fleet, with containerships making up 14%. It also has three LNG carriers, two dredgers and a cruiseship.
