Grindrod Shipping Holdings Sells Two Vessels

Grindrod Shipping Holdings, the provider of shipping services across dry-bulk and liquid, announced that it has contracted to sell to unaffiliated third parties two vessels in in two separate transactions.

The global provider of maritime transportation services in the drybulk and product tanker sectors said that the vessels are the 2005-built handysize drybulk carrier IVS Kawana for a gross price of US$7.8 million and the 2011-built small product tanker Umgeni for a gross price of US$8.875 million.

The IVS Kawana is expected to deliver to the new owners on April 30, 2019 while the Umgeni is expected to deliver to its new owners by June 30, 2019.

Grindrod Shipping has also received approval from IYO Bank on the new term loan facility for an amount up to approximately US$31.4 million, the proceeds of which are expected to be used to finance a portion of the purchase price for our two owned Ultramax “eco” newbuild vessels, IVS Okudogo and IVS Prestwick, on their delivery in 3Q 2019.

Martyn Wade, the Company’s Chief Executive Officer, said: “We are pleased to have agreed an indicative term sheet to expand our relationship with IYO Bank, a leading Japanese financial institution, on competitive financing terms that demonstrate our continued access to attractive sources of capital."

"Our long-standing relationships with and access to Japanese shipyards, financial markets and trading houses is one of our key competitive strengths. In addition, the sales of the IVS Kawana, one of the oldest vessels in our fleet, and the Umgeni, one of our small product tankers built in China, continues our strategy of maintaining a modern, high quality fleet as we await delivery of our contracted newbuildings,” he added.

Grindrod Shipping Holdings' drybulk business, which operates under the brand “Island View Shipping” (IVS) includes a fleet of 18 handysize drybulk carriers (including the IVS Kawana) and 12 supramax/ultramax drybulk carriers on the water with five ultramax drybulk carriers under construction in Japan due be delivered in 2019 and 2020.

The tanker business, which operates under the brand “Unicorn Shipping” includes a fleet of seven medium range tankers and three small tankers (including the Umgeni).