Tomini Group Wins Marine Money’s East Structured Finance Deal of the Year 2024

Tomini Group is proud to announce that it has been awarded the East Structured Finance Deal of the Year 2024 by Marine Money, in recognition of its innovative refinancing of seven Handymax vessels through a Japanese Operating Lease with Call Option (JOLCO) structure.

The transaction involved USD 93 million in total financing across three tranches. It was backed by leading Japanese lenders with equity funding provided by Three i’s Capital Co., Ltd.. Arctic Shipping played a pivotal role as the exclusive broker, expertly aligning all stakeholders and facilitating the successful execution of the deal. The refinancing replaced higher-margin Chinese lease financing, reducing the debt margin and improving the Group’s weighted average cost of capital by over 110 basis points.

The deal was led and expertly managed by Tejas Shah, our Chief Financial Officer, whose leadership and financial expertise were instrumental in executing this complex, multi-party transaction.

This strategic initiative reflects Tomini’s commitment to financial resilience and operational efficiency. The JOLCO structure allows for repayment on only the debt portion, significantly lowering the cash breakeven point and enhancing liquidity.

Beyond the financial advantages, the transaction aligns with Tomini’s long-term sustainability objectives. The improved cash position will support fleet upgrades through the installation of energy-saving devices and emissions-reducing technologies, with projected CO2 emission reductions of over 10%. These investments are part of Tomini’s in-house Dry Dock Upgrade Specification initiative.

With an average vessel age of just eight years and a loan tenor of five to six years, Tomini is positioned to have these assets debt-free by the end of the term, reinforcing its long-term stability and competitiveness in the global shipping market.

This recognition underscores the Group’s forward-looking financial strategy and its ongoing commitment to delivering value through innovation, sustainability, and disciplined capital management.