Completed Development AidData Chinese Aid

CSSC enters into lease and buyback agreement worth USD 40 million with Star Bulk for the acquisition of the vessel Star Ariadne (HN 1360)

$40M USD

Funder	CSSC (Hong Kong) Shipping Co., Ltd.
Recipient Organization	Star Bulk Carriers Corp.
Country	Marshall Islands
Start Date	Jan 01, 2013
End Date	Dec 08, 2032
Duration	7,281 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92235`

Grant Description

CSSC enters into lease and buyback agreement worth USD 40 million with Star Bulk for the acquisition of the vessel Star Ariadne (HN 1360) In 2013, CSSC (Hong Kong) Shipping Co., Ltd. (CSSC) and Star Bulk Carriers (Star Bulk) entered into a sale and leaseback agreement worth USD 40 million for the acquisition of the Star Ariadne (HN 1360) shipping vessel, owned by Star Bulk.

The vessel was leased back to Star Bulk for a period of 10-years in a bareboat charter agreement, with an unknown variable interest rate.

The agreement allows for purchase options that can be exercised by Star Bulk monthly at any point throughout the 10-year bareboat charter agreement.

Upon the 10-year anniversary of the vessel’s delivery, Star Bulk is obligated to buyback the ship at a price of USD 12 million. The Star Ariadne was delivered to Star Bulk on March 28, 2017.

📋 Staff Comments

Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products.
A 'bareboat charter' is a charter in which the owner of the boat (in this case, CSSC) leases only the vessel (with no crew) to the charterer or lessee (in this case, Star Bulk).

📚 Sources & References

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018
STAR BULK CARRIERS CORP.: ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2017 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.