Singapore’s Hafnia has agreed a sale-and-leaseback deal with China’s ICBC Financial Leasing Co for 12 LR1 tankers recently acquired from Scorpio Tankers.

The Chinese leasing company is paying $414m for the 12 ships all built in 2016 except for one 2015-built vessel, in a deal completed in late February.

The Mikael Skov-led shipowner said it will bareboat charter-in the vessels for a period of 10 years.