Monaco-based Scorpio Tankers Inc. announced on Monday, June 25, that it has agreed to sell and leaseback two MR product tankers (STI Gramercy and STI Queens) and two LR2 product tankers (STI Oxford and STI Selatar) in two separate transactions to an international financial institution.

Upon completion, the company’s liquidity is expected to increase by $42 million in aggregate after the repayment of outstanding debt. These lease financing arrangements are part of the company’s new financing initiatives that were announced on April 25, 2018.

As part of the agreements, the company will bareboat charter-in the vessels for a period of seven years. In addition, the company has purchase options beginning at the end of the third year of each agreement. There is also a purchase obligation for each vessel upon the expiration of each agreement.

Scorpio Tankers is a provider of marine transportation of petroleum products worldwide. The company currently owns or finance leases 109 product tankers (38 LR2 tankers, 12 LR1 tankers, 45 MR tankers and 14 Handymax tankers) with an average age of 2.9 years and time or bareboat charters-in 17 product tankers (two LR2 tankers, eight MR tankers and seven Handymax tankers).