Completed Commercial AidData Chinese Aid

SPDBFL enters into $96.5 million sale and leaseback transaction with Scorpio Tankers Inc. for 4 MR product tankers (STI Donald C Trauscht, STI Esles II, STI San Telmo, and STI Jardins)

$96.5M USD

Funder	SPDB Financial Leasing Co., Ltd. (SPDBFL)
Recipient Organization	Scorpio Tankers Inc.
Country	Marshall Islands
Start Date	Nov 01, 2020
End Date	Jun 10, 2033
Duration	4,604 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`105619`

Grant Description

SPDBFL enters into $96.5 million sale and leaseback transaction with Scorpio Tankers Inc. for 4 MR product tankers (STI Donald C Trauscht, STI Esles II, STI San Telmo, and STI Jardins) In November 2020, SPDB Financial Leasing Co., Ltd. (SPDBFL) entered into a sale and leaseback transaction with Scorpio Tankers Inc. four MR product tankers (STI Donald C Trauscht, STI Esles II, STI San Telmo, and STI Jardins).

The aggregate borrowing amount under the arrangement was $96.5 million, which was fully drawn (disbursed) in November and December 2020. The agreements for STI Donald C Trauscht and STI San Telmo were for a fixed term of seven years. The agreements for STI Esles II and STI Jardins were for a fixed term of eight years.

The leases bore interest at the prevailing benchmark rate (LIBOR and SOFR plus a CSA) plus a margin of 3.05% per annum and had options to purchase the vessels beginning on the third anniversary of the delivery date of each agreement.

Each agreement also had a purchase obligation at the end of the term (which is equal to the outstanding principal balance at that date).

Additionally, coinciding with the first payment dates in the first quarter of 2021, Scorpio Tankers Inc. was required to deposit with the lessor 3% of the borrowing amount, or $2.9 million in aggregate.

In September 2023, Scorpio Tankers Inc. gave notice to exercise the purchase options on the vessels under this arrangement.

The purchases of STI Esles II and STI Donald C Trauscht closed in November 2023 and Scorpio Tankers Inc. repaid the aggregate outstanding lease liability, net of $1.5 million in deposits held by the lessor, of $38.1 million related to these vessels, and paid purchase option fees of $0.8 million as part of these transactions, thus terminating the leases.

The purchases of STI Jardins and STI San Telmo closed in January 2024.

📋 Staff Comments

SPDBFL is a financial leasing company established by Shanghai Pudong Development Bank Co. Ltd, COMAC, Shanghai State-owned Assets Operation Co. Ltd and Shanghai Long Hua International Aviation Investment Co. Ltd. The company provides financial leasing services for aircraft, aeronautical facilities, shipping, transportation, engineering machinery, industrial equipment, infrastructure and construction.
Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products.
A bareboat charter is when the owner of the vessel (in this case, SPDBFL) leases (or 'charters') the vessel to a lessee ('charterer') without any crew or supplies. The charterer assumes full responsibility for the operation of the vessel.
Scorpio Tankers Inc. is a company incorporated under the laws of the Republic of the Marshall Islands on July 1, 2019. Its principal executive offices are located at 99 Boulevard du Jardin Exotique Monaco 98000 and its telephone number at that address is +377-9798-5716. It provides seaborne transportation of crude oil and refined petroleum products worldwide. It began its operations in October 2009 with three vessels. In April 2010, it completed its initial public offering, and its common stock commenced trading on the New York Stock Exchange, or NYSE, under the symbol “STNG.” Scorpio Tankers Inc. has since expanded, and as of March 21, 2024, its fleet consisted of 110 wholly owned or leased financed tankers (39 LR2, 57 MR and 14 Handymax) with a weighted average age of approximately 8.1-years.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.

📚 Sources & References

Scorpio Tankers Inc. Form 20-F Securities and Exchange Commission
Scorpio Tankers Inc. 2023 Annual Report Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Scorpio Tankers Inc.

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