Dynagas, CDB Leasing seal sale and leaseback deal for LNG carrier quartet

LNG carrier owner Dynagas LNG Partners has signed a sale and leaseback deal with China Development Bank Financial Leasing (CDB Leasing) for its four liquefied natural gas carriers.

The NYSE-listed limited partnership formed by Greek shipowner Dynagas said in March in its financial report it has signed a term sheet with a “major financial leasing operator in Asia” for the lease financing of four of its six LNG carriers worth up to $345 million.

The firm said at the time the transaction is expected to close in the second quarter of 2024.

According to a Hong Kong stock exchange filling by CDB Leasing, the company’s four wholly-owned special purpose vehicles entered into a finance lease agreement on June 19 with four LNG carrier operating companies owned by Dynagas LNG Partners.

These vessel owning subsidiaries are Pegasus Shipholding, Lance Shipping, Seacrown Maritime, and Fareastern Shipping.

The four LNG carriers in question are the 2007-built 149,700-cbm, Clean Energy and Ob River, the 2008-built 149,700-cbm, Amur River, and the 2013-built 155,000-cbm, Arctic Aurora.

$477.5 million

CDB Leasing said it had purchased the vessels for an amount not exceeding $477.5 million, and it has agreed to lease the ships for a period between 60 months and 120 months.

The firm said the total amount of lease interest for the lease period is about $130 million.

Upon expiration of the lease period, Dynagas LNG Partners may purchase back the vessels from CDB Leasing at a consideration of not exceeding $95.5 million in nominal value, it said.

Last month, CDB Leasing also signed a sale and leaseback deal with Norway-based shipping firm Awilco LNG for the latter’s two 2013-built 156,000-cbm TFDE LNG carriers, WilForce and WilPride.

CDB Leasing purchased the vessels from Awilco LNG for an amount not exceeding $200 million, and it has agreed to lease the ships for a period of 144 months.

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