Intercontinental Shipping (02409) enters into four replacement agreements

According to Zhitong Finance App, Intercontinental Shipping (02409) announced that starting from December 23, 2025, the company will enter into four separate replacement agreements with each owner, charterer, and four wholly-owned subsidiaries of Chinese ship leasing and charterers (i.e. Golden Canola Limited; Golden Olive Limited; Golden Flax Limited; and Golden Palm Limited). All rights and obligations of charterers under the transaction documents Each wholly-owned subsidiary of the charterer will be responsible (replaced) in place of the charterer.

Therefore, the Company originally provided a charter guarantee with the owner as the beneficiary to guarantee the proper and timely performance of the charterer's obligations under the transaction documents; thereafter, it should be converted to guarantee the proper and timely performance of the charterer's wholly-owned subsidiary's obligations under the transaction documents.

Replacement is part of the shipping industry market practice. Special purpose companies are usually established on the eve of ship delivery and transaction documents relating to such companies are replaced. In this case, the targets of the charterer's wholly-owned subsidiaries are the charterer's various wholly-owned subsidiaries.

After the replacement, the sponsor was a wholly-owned subsidiary of the charterer, so there was no significant change in the company's risk exposure as a guarantor, and the replacement did not change other provisions of the transaction documents. Therefore, the Board of Directors believes that the conclusion of the four replacement agreements has no adverse effect on the Group; and that the terms of the four replacement agreements are based on general commercial terms, are fair and reasonable, and conform to the overall interests of the Company and its shareholders.