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Overview

CSSC enters into sale and leaseback agreement worth $34.8 million USD with Star Bulk for the acquisition of the Debbie H cargo ship (HN 1389) (Linked to Record ID#92161, #92163)

Commitments (Constant USD, 2023)$35,019,111
Commitment Year•2018Country of Activity•Marshall IslandsDirect Recipient Country of Incorporation•Marshall IslandsSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2018
Last repayment (originally scheduled)
Dec 30, 2027

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned companies

  • CSSC (Hong Kong) Shipping Co., Ltd.

Receiving agencies

Private Sector

  • Star Bulk Carriers Corp.

Loan description

CSSC enters into sale and leaseback agreement worth $34.8 million USD with Star Bulk for the acquisition of the Debbie H cargo ship (HN 1389)

Interest type•UnknownMaturity•10 years

Narrative

Full Description

Project narrative

n 2018, CSSC (Hong Kong) Shipping Co., Ltd. (CSSC) and Star Bulk Carriers (Star Bulk) entered into a sale and leaseback agreement worth $34.8 million USD for the acquisition of the Debbie H (HN 1389) Newcastlemax shipping vessel. 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 on a monthly basis at any point throughout the 10-year bareboat charter agreement. At the end of the 10-year bareboat charter, Star Bulk is obligated to purchase the vessel from CSSC at a price of $10.44 million USD. The funds from the agreement sale and leaseback and two identical agreements allowed Star Bulk to purchase this ship, along with two others, the Katie K (HN 1388) (captured via Record ID#92161) and the Star Ayesha (HN 1390) (captured via Record ID#92163) from Oceanbulk Container Carriers, LLC. The Debbie H was delivered to Star Bulk on May 28, 2019.

Staff comments

1. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products. 2. A ‘bareboat charter’ is a charter in which the owner of the boat leases only the vessel (with no crew) to the charterer or lessee (in this case, Star Bulk). 3. Star Bulk Carriers was incorporated in 2006 and is based in Marousi, Greece.