Product tanker company d'Amico International Shipping (DIS) has through its Ireland-based subsidiary d'Amico Tankers entered into a memorandum of agreement and bareboat charter contract for the sale and leaseback of a MR product tanker.

The 49,990dwt High Loyalty, built in 2015 by Hyundai-Mipo, secured a sale and leaseback deal with an undisclosed Japanese financing institution worth US$28.5 million.

"Through this agreement, DIS will generate a positive net cash effect of around US$13.3 million, strengthening our liquidity position. The vessel will be also bareboat chartered back by d'Amico Tankers for 10 years and we will have the option of repurchasing it starting from the second anniversary of its sale date, at a competitive cost of funds," Marco Fiori, CEO of DIS, said.

The deal comes in less than a month since the company's last sale and leaseback deal inked in July. The contract involves a medium-range product tanker vessel MT High Trust, and was signed for a consideration of US$29.5 million.

The sale and leaseback contracts are being pursued as the company readies for the recovery from a very challenging period for the product tanker market.

DIS' fleet comprises 58.5 double-hulled product tankers with an average age of about 7.1 years (of which 27 owned, 27.5 chartered-in and 4 bareboat chartered).

d'Amico Tankers has also signed shipbuilding contracts with Hyundai Mipo Dockyard Co., Ltd., for the construction of three LR product tankers with the delivery expected between the third quarter of 2018 and the first quarter of 2019.