SFL Corporation Ltd. today announced that it has agreed to build five 16,800 TEU container vessels with scheduled delivery in 2028 at an aggregate construction cost of approximately $1 billion.

The vessels will have LNG dual-fuel propulsion and the latest features in fuel efficiency and cargo intake optimization.

Concurrently, SFL has agreed minimum 10-year time charters to a leading liner company from delivery, adding approximately $1.2 billion to our charter backlog. There will be an option to extend the charters for another two years, and purchase options at the end of year 10 and 12, including a profit share feature.

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: «This marks another accretive milestone investment for SFL and will add five large container vessels to our fleet. With these vessels delivered, we will have 11 LNG dual-fuel vessels, and it demonstrates our commitment to continue expanding our investment focus to assets with a lower carbon footprint whilst ensuring significant visibility through 10-year firm charters to an investment grade counterparty.

With the acquisitions and charter extensions announced so far this year, we have added approximately $1.75 billion to our fixed rate charter backlog.”

SFL Corporation Ltd. press release