Okeanis clinches new loan to buy back China-leased VLCC

OKEANIS Eco Tankers has lined up refinancing for the third of a trio of very large crude carriers it decided to buy back from a Chinese lessor.

All three vessels were subject to sale-and-leaseback deals with CMB Financial Leasing of a kind that usually provide repurchase options.

A few weeks ago, the New York- and Oslo-listed owner entered a $130m credit facility with a “prominent” Greek bank to finance its repurchases of the 2022-built Nissos Nikouria (IMO: 9920760) and the 2020-built Nissos Anafi (IMO: 9856086).

Now, it has obtained a new $65m secured term loan facility from Taiwanese lender E.SUN Commercial Bank to fund its repurchase of the 2022-built Nissos Kea (IMO: 9920758).

The agreement includes an interest rate of 135 basis points over the Term SOFR, a US index rate, that rate is cheaper than a refinancing Okeanis clinched last year which cut debt servicing costs on another two of its VLCCs.

The loan will be repaid in quarterly instalments of $900,000, together with a balloon instalment of $39.8m at maturity, the company said.

The loan marked “another step in expanding our footprint in this financing market”, said company chief financial officer Iraklis Sbarounis.

All the new loans for the trio of VLCCs, the company’s youngest, were at “very competitive terms and maturities extending to 2032”.

Greece-based Okeanis was eyeing potential refinancings also for its last remaining sale and leaseback VLCCS, Nissos Rhenia (IMO: 9845685) and Nissos Despotiko (IMO: 9845697), in 2026 “when we reach the refinancing window”, he said.

“Until then we will generally continue to be on the lookout for financially accretive opportunities, if and when they arise,” Sbarounis said.

Alafouzos family-led Okeanis has been reducing the cost of debt servicing and extending its maturities as well as its list of financiers steadily over the past few years and the latest deals appear to sit within that strategy.

While not alluded to in the company’s announcement, the moves also come against a wider backdrop of shipowners seeking to refinance Chinese leases as a precaution against Trump Administration threats to target Chinese-linked vessels with extra port fees.