Zhitong Financial APP News, Xinyuan Enterprise Group (01748) announced that on May 5, 2022, the charterer (Blue Whale Shipping Co., Ltd., an indirect wholly-owned subsidiary of the company) entered into a memorandum of agreement with the owner Bright Lilstella Shipping Ltd, in which the owner agreed to buy the ship from the charterer for a consideration of US $13 million; and entered into a bareboat charter agreement with the owner for the bareboat charter. Under the bareboat charter agreement, the charterer charters back the ship from the owner and has a purchase option to purchase the ship from the owner, and if the purchase option is not exercised, the charterer assumes the obligation to purchase the ship from the owner at the end of the charter period, subject to the conditions contained therein. The lease is 72 months.

According to the announcement, the conclusion of the Memorandum of Agreement and the bareboat charter agreement are the after-sale and leaseback arrangements for the ships concerned, and the company is of the view that since the Group can obtain additional working capital while maintaining an appropriate interest in the ships, this will also enhance the cash flow of the Group, so the arrangement is beneficial to the Group.

It is reported that the ship is an oil tanker with a total tonnage of 7293 built in 2016. As at 31 December 2021, the carrying amount of the ship's net assets was approximately $15.08 million.