Trafigura has agreed to sell five unnamed MR tankers to China Development Bank Financial Leasing (CDB Leasing) in a deal announced on Monday.
The Hong Kong-listed leasing arm of state-owned China Development Bank said it will pay the commodities giant $140m for the vessels.
The vessels are owned by White Flag Ventures XVIII LLC, White Flag Ventures XIII LLC, White Flag Ventures XX LLC, White Flag Ventures XXII LLC and White Flag Ventures XXIII LLC, which in turn are controlled by Singapore-registered Trafigura Group Pte, the main holding company for the Trafigura group.
CDB Leasing, which will be funding the acquisitions via its own funds and/or commercial bank loans, will not be leasing or chartering the vessels back to Trafigura.
The company added that the transaction will increase its market share in the tanker market and is consistent with its business development strategy.
At the end of 2020, CDB Leasing said it controlled a fleet of 110 vessels comprising 85 ships under operating leases and 25 under finance leases.
Bulkers account for more than 75% of its fleet, with container ships making up 14%. It also has three LNG carriers, two dredgers and a cruise ship.
However, the company has been growing its exposure to the tanker market via a series of acquisitions over the past 12 months.
In June, it agreed to buy 10 MR product tankers of 50,000 dwt each under construction at New Times Shipbuilding for nearly $384m.
In December 2020, the company agreed to purchase 14 product tankers from Maersk Tankers in a deal worth in total $422m.
CDB Leasing has also been increasing its exposure to the LNG market with two sale and leaseback deals with two GasLog-related companies.
In mid-October, GasLog Partners agreed the sale and leaseback of the 155,000-dwt GasLog Shanghai (built 2013) to CDB Leasing for $120m, while GasLog did a similar deal for the 155,000-cbm GasLog Salem (built 2015) to CDB Leasing for $128m.
Both vessels were taken back on five-year bareboat charters until October 2026, with no obligation to purchase them at the end of their leases.
