Hong Kong-listed CSSC Shipping (CSSC SHIPPING, 03877) disclosed that its wholly owned Singapore SPV, Fortune VLAC I, has entered into a sale-and-leaseback arrangement with Singapore-based Jal Pari Pte. Ltd. on 30 June 2026.
Deal highlights • Acquisition: Fortune VLAC I will acquire a 93,000 CBM Very Large Ammonia Carrier (VLAC) from Jal Pari for a cash consideration of USD99.19 million, to be funded by internal resources and bank borrowings. • Leaseback: The vessel will be leased back to Jal Pari for 120 months. Total charter-hire payable over the period is estimated at USD141.68 million, comprising principal and USD42.00 million of lease interest, to be settled in 120 instalments. • Purchase obligation: At the end of the 10-year charter period, Jal Pari is obliged to repurchase the vessel at a pre-agreed price under the bareboat charter. • Guarantees: Jaldhi Overseas Pte. Ltd. and Kumud Holding Pte. Ltd., both ultimately owned by Mr Vira Chand Bothra, will provide irrevocable guarantees for Jal Pari’s payment and performance obligations.
Asset profile The VLAC, valued at USD119.50 million (based on its shipbuilding contract price), is scheduled for delivery by September 2027. The transaction supports CSSC Shipping’s strategy of expanding its leasing portfolio in high-value, alternative-fuel maritime assets.
Regulatory status The transaction’s highest applicable percentage ratio under Chapter 14 of the HKEX Listing Rules exceeds 5 % but is below 25 %, classifying it as a discloseable transaction. Consequently, it requires public announcement but not shareholder approval.
Additional clarification CSSC Shipping also clarified that, as stated in its 15 April 2026 announcement, UNITED HEAVY LIFT GMBH & CO. KG acts solely as guarantor under the related loan agreements; prior references to “Parent Guarantor” were inadvertent.
Strategic rationale The board considers the agreement a routine expansion of its core leasing business, aligning with the group’s long-term development objectives. All terms were determined on an arm’s-length basis and deemed fair and reasonable by the directors.
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