SFL to acquire eco-design box vessels in long-term chartering deal

ULCV container ship sails on open water fully loaded with containers and cargo. Large container ship at sea, loaded with various container brands.

SFL Corporation Ltd (SFL) has agreed to acquire two new eco-design feeder container vessels in combination with long term time charters to a leading European liner company.

SFL expects to take delivery of the vessels from the shipyard in Q3 and Q4 2022.

The charters will run for a minimum 7 years, with purchase options at the end of year 6 and 7, including a profit share feature.

The firm’s fixed rate charter backlog will increase by approximately $120 million, with an EBITDA contribution from the vessels estimated to be at approximately $13 million per year.

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “The transaction demonstrates our ability to expand our fleet and existing customer relationships through repeat transactions with swift execution.

“We find the deal attractive given the investment grade counterpart, immediate cash flow and with charter terms enabling us to quickly reduce asset exposure over the firm period.”

So far this year the firm has added approximately $1.4 billion to the fixed rate charter backlog.

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