20-F: Okeanis Eco Tankers Announces Vessel Sale and Charter Agreement with Sea 112 Leasing

Okeanis Eco Tankers Corp. finalizes an agreement to sell and charter back the vessel 'Nissos Anafi' with Sea 112 Leasing Co. Limited.

Summary

• Okeanis Eco Tankers Corp. has entered into a sale and leaseback agreement with Sea 112 Leasing Co. Limited for the vessel 'Nissos Anafi'.
• The agreement involves the sale of the vessel by Ark Marine S.A. to Sea 112 Leasing Co. Limited, followed by a bareboat charter of the vessel back to Ark Marine S.A.
• The purchase price and specific financial terms are not disclosed in this document.
• The agreement includes standard clauses related to vessel condition, insurance, and potential defaults.
• The charter period is set to begin on the Commencement Date and end 84 months from the Reference Date (December 31, 2023).
• The agreement is governed by English law and any disputes will be settled through arbitration in London.

Sentiment

Score: 7

Explanation: The document outlines a standard business transaction with no clear positive or negative sentiment. The deal provides financial flexibility but also carries inherent risks.

Positives

• The sale and leaseback agreement provides Okeanis Eco Tankers with access to capital while retaining operational control of the vessel.
• The agreement allows for continued operation of the vessel within specified trading limits.

Negatives

• The agreement includes clauses that could lead to termination in case of defaults or failure to meet certain conditions.
• The Charterers are responsible for costs associated with changes in flag state requiring a physical presence.

Risks

• The agreement is subject to standard risks associated with bareboat charters, including potential defaults by either party.
• The Charterers are responsible for costs associated with changes in flag state requiring a physical presence.
• The agreement is subject to market risks and potential challenges in the shipping industry.

Future Outlook

The agreement outlines a structured financial arrangement for the vessel's operation over the next seven years, with potential for ownership transfer at the end of the charter period.

Industry Context

Sale and leaseback transactions are common in the shipping industry as a way to free up capital while retaining operational control of assets.

Comparison to Industry Standards

• The document outlines a standard bareboat charter agreement, similar to those used by companies like Costamare Inc. and Global Ship Lease, Inc.
• The terms and conditions, including insurance requirements and default clauses, are consistent with industry norms.
• The use of SOFR as a benchmark interest rate is in line with current market practices.

Stakeholder Impact

• Shareholders: The agreement provides financial flexibility for the company.
• Employees: No immediate impact on employees.
• Customers: No immediate impact on customers.
• Suppliers: No immediate impact on suppliers.
• Creditors: The agreement affects the company's debt structure.

Next Steps

• The Buyers and Sellers will proceed with the delivery of the vessel and the execution of the bareboat charter.
• The Buyers will register the vessel in their Nominated Flag State.
• The Sellers will close their register.

Key Dates

Keywords

sale and leaseback, bareboat charter, shipping, vessel, Okeanis Eco Tankers, Sea 112 Leasing, Nissos Anafi, finance, agreement