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HFW advises d’Amico International Shipping on group’s first JOLCO transaction

28 January 2019

On 18 January 2019, d’Amico Tankers D.A.C., an operating subsidiary of d’Amico International Shipping (DIS), took delivery from Hyundai Mipo Dockyard Co., Ltd. of the motor tanker “CIELO DI HOUSTON”, a 75,000 dwt newbuild LR1 product tanker.

HFW acted for d’Amico on the financing aspects of the transaction, advising on a sale and leaseback transaction under the client’s first use of a JOLCO (Japanese Operating Lease with Call Option).

APAC Head of Ship Finance and Singapore-based Partner John Forrester led the HFW team, which included Senior Associate Aysha El-Kaddah and Associate Denis Nifontov, both from our London office.

John said: “We are very pleased to have advised d’Amico Tankers, a longstanding client of the firm, on its first JOLCO transaction, and ensured a successful and timely outcome for all parties. We have lots of experience as a firm of JOLCOs in the aviation sector and it is interesting to see them becoming increasingly popular in the shipping sector too. Our previous experience of these structures, combined with our in-depth understanding of the shipping industry, means that we are perfectly placed to advise on shipping JOLCOs across our international network.”

In the company’s press release, Paolo d’Amico, Chairman of d’Amico International Shipping, said: “I am glad to announce the conclusion of this transaction with a large Japanese financial institution, which will generate net cash proceeds of approximately US$ 10.2 million for DIS, relative to financing the vessel through the previously committed bank loan.

This is our first JOLCO (Japanese Operating Lease with Call Option) transaction; it is a pioneering deal for a non-Japanese ship-owner, providing us with a new source of capital with enhanced economics relative to conventional Japanese sale-leasebacks.”

Press Contact
Chris Johnson
Head of Communications