Chinese bulker owner and operator Jinhui Shipping and Transportation has struck sale and leaseback deals with compatriot financiers for two of its vessels, which will see the company free up nearly $30m in cash.
The Oslo- and Hong Kong-listed company is selling the 2014-built ultramax Jin Heng for $11.1m and the 2019-built kamsarmax Jin Li for $17.2m to Tianjin Jinhaishiwu Leasing and Tianjin Jinhaiba Leasing, respectively.
Both deals, denominated in renminbi, include bareboat charters for 84 months, with repurchase options available throughout the term or an obligation to buy at the end of the charter period.
Jinhui acquired the Jin Heng in September 2022 from Japan’s Nisshin Shipping for $25.4m, while the Jin Li was purchased in February 2024 from Vincent Shipping for $31.25m.
The company said in a filing that the transaction structure offers access to additional working capital at a competitive cost, thereby enhancing liquidity while retaining operational control over the vessels.
Earlier this year, Jinhui sold off two older supramax vessels and currently operates a fleet of around 30 bulkers.
