Euroseas Ltd. has signed a time charter contract for M/V Monica, a newbuild fuel efficient 1,800 TEU feeder containership currently under construction.
According to Euroseas, the contract will be for a minimum of 10 to a maximum of 12 months, at the charterer’s discretion, with a gross daily fee of $16,000.
The new charter will begin after the vessel is delivered from the shipyard, which is expected around mid-May 2024.
Euroseas revealed that the transaction was funded using a mix of its funds and a $22.5 million loan from the National Bank of Fujairah.
The same finance has been arranged for the sister ship, M/V Stefania K, which is scheduled to be delivered in mid-June.
Aristides Pittas, Chairman and CEO of Euroseas, said: “This charter is expected to contribute about $2.7 million of EBITDA for the minimum contracted period; it increases our 2024 charter coverage to over 85 per cent.”
Bilal Hasan Ashraf – Head, Energy & Marine and Government and Large Corporate, Fujairah – National Bank of Fujairah PJSC, stated: “By investing in cleaner and more efficient vessels, we are proud to contribute to a greener future for the shipping industry and the planet as a whole.”
Nicholas Petrakakos, Partner & MD at Alantra DIFC, commented: “We are pleased to have advised Euroseas in this milestone sustainability-linked financing facility with National Bank of Fujairah, for two state-of-the-art containerships MV Monica and MV Stephania K.
“Our Maritime & Offshore team strives to deliver innovative solutions to our clients, and this transaction is a testament of our commitment, bringing together a prominent Greek owner and the most sophisticated UAE based shipping bank.”
In April, Euroseas announced a time charter contract for its 4,250 TEU intermediate containership, M/V Synergy Antwerp.