Ship Finance Int'l Ltd. Agree To $230 Million In Newbuilds

By MarEx 2011-04-20 14:10:59

A state-owned Chinese shipyard has agreed to a deal with Ship Finance International Ltd. for the construction of four 4.800 TEU container vessels, totaling an estimated $230 million.

CEO of Ship Finance Management AS, Ole B. Hjertaker, stated that the company is pleased to further expand in the container market with the construction of these state-of-the-art vessels.  The ships are highly specified, optimized for high cargo intake, having efficient consumption and speed when compared to other existing container vessels of equal size. 

The newbuilds are slotted to be ready for delivery in 2013, with the majority of payment due for the actual delivery of the ships.  Upon completion, the container vessels will be chartered to a European-based container line and will be garnering a charter rate of approximately $26,250 per day per vessel.  The charter will endure for 7 years post-delivery. 

Hjertaker added that this project in total will yield $270 million for their backlog, currently standing at $7billion, which demonstrates Ship Finance’s ambition in the renewal of their fleet with modern assets and high quality counterparts. 

Ship Finance is predicting to secure bank financing for around 80% of the purchase price.