Navig8 Product Tankers has entered into sale and leaseback agreements with China's Bank of Communications Finance Leasing for three of the company's 109,999dwt product tankers.

The expected net proceeds from the transaction will be US$118.8m. A portion of the proceeds will be utilized to repay existing loans used to finance the vessels' newbuilding contracts.

The vessels are under contraction at CSSC Offshore & Marine Engineering, formerly Guangzhou Shipyard International.

Under the sale and leaseback agreements, the vessels will be sold and delivered to BoComm, and Navig8 will then take the vessels on 10-year bareboat charters, with purchase options to re-acquire the vessels during the charter period.