SFL Corporation Ltd. announced that it has agreed to acquire three new LR2 product tankers for an aggregate purchase price of approximately $230 million in combination with long term time charters to a world-leading energy and commodities company. The vessels are currently under construction in China, with the latest eco-design features. The sellers are affiliates of the Company?s largest shareholder Hemen Holding Ltd, and the purchase price is in line with valuations by independent shipbrokers.

The Company expects to take delivery of the vessels between the second and fourth quarter of this year, and the charter period will be minimum five years plus up to three years of extension options. This adds close to $200 million to SFL?s fixed-rate backlog, excluding the optional years. The charterer will have options to purchase the vessels after year five and eight, subject to a profit share mechanism with SFL.