ICBCL enters into three sale and leaseback agreements worth up to USD 255 million with Otto Marine for the purchase of three super-large anchor handling tug boats

Project narrative

In 2013 and 2014, ICBC Financial Leasing Co, Ltd. (ICBCL) and Otto Marine Limited entered into a sale and leaseback agreement worth USD 255 million for three super-large anchor handling tug boats, the "Go Phoenix", "Go Pegasus", and "Go Perseus", which were to be leased back to Otto Marine Limited as bareboat charters. Of the USD 255 million in financing, USD 185.5 million was paid by ICBCL to Otto Marine Limited for the sale of the boats and USD 69.5 million was held in the form of Otto Marine's seller's credit to fund the closing costs of the acquisition. Otto Marine Limited issued corporate guarantees in favor of ICBCL for all three vessels. The details of the loan are unclear. By early 2016, Otto Marine Limited was in default on the charter agreements for all three vessels. The company was delisted from the Singaporean Stock Exchange later in 2016. In 2020, a Singaporean court ordered the owner of Otto Marine Limited to repay the remainder of the financing for the three vessels to ICBCL.