Jinhui Shipping Secures Up to $34M Sale-and-Leaseback Financing for Two Ultramax Newbuilds
Key Takeaways
- •Jinhui Shipping arranged up to $34 million in sale-and-leaseback financing for two 63,500 dwt ultramax bulkers under construction at Jiangsu Hantong Ship Heavy Industry.
- •Financing is capped at $17 million per vessel or 60% of each ship's assessed market value, with Jinhui retaining purchase options after the second anniversary of delivery.
- •The two vessels were ordered in June 2024 at a contract price of $34 million each and are scheduled for delivery in December 2026 and November 2027.
- •Together with a separate $36 million package announced the previous day, Jinhui has secured up to $70 million in total funding across four ultramax newbuildings.
- •The financing arrangements support Jinhui's fleet renewal strategy of adding fuel-efficient tonnage as tightening IMO environmental regulations pressure owners to upgrade or retire older vessels.
Jinhui Shipping and Transportation has secured a second financing package this week, arranging up to $34m in sale-and-leaseback financing against two ultramax newbuildings under construction at Jiangsu Hantong Ship Heavy Industry.
The Oslo-listed dry bulk shipowner will sell the vessels — to be named Jin Han and Jin Ming — to two special-purpose vehicles owned by Jiangsu Financial Leasing, before chartering them back for periods of up to seven years.
Financing under the agreement is capped at $17m per vessel or 60% of each ship's assessed market value, whichever figure is lower. Jinhui holds the right to exercise purchase options after the second anniversary of each delivery. Should the company decline those options before the charters expire, it is obligated to repurchase each vessel for $5m.
The two 63,500 dwt ultramax bulkers were ordered in June 2024 at a contract price of $34m each. Scheduled delivery dates are December 2026 for the first vessel and November 2027 for the second.
This latest transaction follows a separate financing arrangement announced just one day earlier, in which Jinhui secured up to $36m against two 64,500 dwt newbuildings named Jin Yao and Jin Fu. Those vessels are currently on order at Jiangmen Nanyang Ship Engineering and are slated for delivery in early 2028.
Together, the two financing packages provide Jinhui with access to up to $70m in total funding across four ultramax newbuildings. The arrangements form part of the company's broader fleet renewal strategy, which includes adding modern, fuel-efficient tonnage while progressively divesting older supramax vessels.
Jiangsu Financial Leasing is one of several Chinese leasing institutions that have become significant sources of shipping capital over the past decade, as traditional European bank lending to the maritime sector contracted. Sale-and-leaseback structures of the type Jinhui has now used twice this week are widely employed in the industry as a mechanism to unlock capital from newbuild orders while retaining operational control of vessels through long-term charters.
Jinhui's push to renew its fleet with modern ultramaxes comes as the dry bulk sector faces tightening environmental regulations, including the International Maritime Organization's Carbon Intensity Indicator and Energy Efficiency Existing Ship Index, which pressure owners to operate more efficient vessels or retire older, less compliant tonnage.