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Home News SFL acquires two newbuild feeder container vessels

SFL acquires two newbuild feeder container vessels

SFL has agreed to acquire two new eco-designed feeder container ships in combination with long-term time charters to a leading European liner company.

“The transaction demonstrates our ability to expand our fleet and existing customer relationships through repeat transactions with swift execution,” stressed Ole B. Hjertaker, CEO of SFL Management AS.

The feeders are expected to be delivered to SFL between the third and fourth quarters of 2022. The time charters will run for a period of minimum seven years, with purchase options at the end of years six and seven, including a profit share feature.

SFL said the fixed rate charter backlog will increase by approximately US$120 million, with an EBITDA contribution from the vessels estimated to be approximately US$13 million per year.

“We find the deal attractive given the investment grade counterpart, immediate cash flow and with charter terms enabling us to quickly reduce asset exposure over the firm period. So far this year we have added approximately US$1.4 billion to the fixed rate charter backlog,” commented Hjertaker.

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