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2006 November 21   12:22

AET completes a sale and lease-back deal for four of its aframax tankers

Tanker company AET, formerly American Eagle Tankers and a subsidiary of Malaysia’s MISC, completed a sale and lease-back deal for four of its aframax tankers last week in a move aimed at freeing up capital for new investment and has separately signed a further deal to sell an additional vessel, also to be leased-back, bringing the total cash released by the sales to US$90m.

The double-hull, 1990s-built Eagle Centaurus, Eagle Auriga, Eagle Carina and Eagle Corona were sold to shipping funds administered by the Norwegian investment bank ABG Sundal Collier and immediately leased back on a seven-year bareboat charter in a deal AER says is “worth US$165m”.

In a separate deal the Quasar is being sold to Greek shipowner Polar Marine The vessel will also be leased-back, on a threeyear time charter to service Petronas, a key AET customer and major shareholder of MISC Berhad. AET says the deal is worth US$20m.

AET’s CEO, Amir Hamzah Azizan, said: “AET is committed to operating a modern fleet of tankers. Whilst the asset price of our vessels remains high, it makes perfect sense for us to realise some of that capital through sale and lease-back arrangements such as these. It allows us to continue operating these tankers whilst re-investing the capital released in newer tonnage”.

He added: “Our overarching strategy is to continue to grow our fleet and renew our vessels regularly, as demonstrated by our recent order placed with Tsuneishi Corporation for up to 4 new aframax vessels to be delivered in 2009 and 2010. We are already a leading player in the aframax market and a growing presence in the VLCC sector. Through arrangements such as these, and through continuing to establish partnerships on a global scale, AET will soon be the world’s leading provider of ocean transportation for petroleum.”

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