Ocean Yield acquires 49.9% equity interest in one dual-fuel container vessel
The vessel will be fitted with a dual-fuel engine and will be able to operate on LNG.
Ocean Yield ASA has agreed to acquire 49.9% equity interest in one dual-fuel newbuilding container vessel with 18-year bareboat charter to a major European container line.
The vessel, with a capacity of 15,300 TEUs is under construction at Hyundai Heavy Industries in Korea and is expected to be delivered in Q3 2022. The vessel will be fitted with a dual-fuel engine and will be able to operate on LNG. The vessel will commence its 18- year bareboat charter to a major European container line upon delivery.
The investment will be made through Box Holdings Inc., a joint venture between Ocean Yield and Quantum Pacific Shipping formed in 2016, which already owns six mega container vessels with long-term charters. The transaction is subject to final documentation.
Box Holdings Inc. is concurrently working on a refinancing of the bank debt relating to the six mega container vessels it currently owns, which is expected to release a significant cash amount that can be made available for new investments and or dividends to the shareholders. It is expected that this refinancing will close during Q3 2021.
Quantum Pacific Shipping is part of the global Quantum Pacific Group, whose interests span a diverse set of industries including energy, natural resources, automotive, sports, medical technologies as well as shipping. Quantum Pacific Shipping’s fleet is managed by Singapore-based Eastern Pacific Shipping. With a history spanning over 60 years, Eastern Pacific Shipping today manages over 180 vessels and 18 million deadweight-tonnes across the dry bulk, container vessel, and tanker segments.
CEO of Ocean Yield, Lars Solbakken said in a comment:
“We are pleased to expand our partnership with Quantum Pacific Shipping, a group with extensive experience in the container segment and an excellent reputation. This investment will contribute to further increase our charter backlog and future dividend capacity.”
CEO of Eastern Pacific Shipping, Cyril Ducau, stated:
“We are happy to again partner with Ocean Yield on this exciting project. Our relationship has only become stronger over time, and we look forward to continuing to grow our business together going forward.”