Sapura Energy executes RM 10.3 billion financing facilities to refinance its debt
KUALA LUMPUR (March 30): Sapura TMC Sdn Bhd, a 100% subsidiary of Sapura Energy Bhd, has set up multi-currency financing facilities to raise more than 10.3 billion ringgit.
In a filing today, Sapura Energy said the facilities included two term loan facilities of approximately US $ 602 million (RM 2.5 billion) and RM 906 million respectively, and non-murabah sukuk. rated in the amount of $ 125 million (RM 518.5 million) and RM 6.38. billion.
The installations have an occupancy period of seven years and are guaranteed by Sapura Energy. This comes with the condition that its major shareholder, Permodalan Nasional Bhd (PNB), continue to hold more than 33% in the oil and gas (O&G) sector during the period. PNB currently holds a 40.1% stake in the company.
Sapura TMC has entered into a conventional facility agreement with Malaysian, regional and international banks for the two term loan facilities. The sukuk murabahah was executed with a consortium of Malaysian banks as part of its multi-currency Sukuk program, Sapura Energy added.
“The participating banks are Maybank Islamic Bhd, CIMB Bank Bhd, CIMB Islamic Bank Bhd, RHB Islamic Bank Bhd, AmBank (M) Bhd, AmBank Islamic Bhd, Export-Import Bank of Malaysia Bhd, United Overseas Bank Ltd, Labuan Branch, United Overseas Bank Ltd, Sumitomo Mitsui Banking Corp, Labuan Branch, ING Bank NV, Singapore Branch, Standard Chartered Bank, Offshore Labuan and First Abu Dhabi Bank PJSC, Labuan Branch, ”he said.
The refinancing exercise is long overdue by the company, which has oscillated between huge profits and losses since 2016. At the end of October 2020, the group had borrowings of 10.45 billion ringgit, including short-term loans of 3.29 billion. ringgit. billion dollars and long-term loans of 7.16 billion ringgit.
“The proceeds of the 2021 MCF will be used for the full settlement of all amounts payable and unpaid by Sapura TMC under a 2014 conventional facility, a 2015 Islamic facility, a 2017 conventional facility and the outstanding sukuk murabahah existing under the multi-currency Sukuk program. »Said Sapura Energy.
“The refinancing exercise and previously announced RM 1.2 billion working capital provide us with a timely financial margin in a recovering energy market,” said Datuk Mohd Anuar Taib, CEO of Sapura Energy Group.
“This will allow us to continue winning new O&G contracts and explore emerging opportunities in the renewable energy sector,” said Mohd Anuar.
Shares of Sapura Energy were half a sen or 3.45% higher at 15 sen at the time of writing today, valuing the group at RM 2.4 billion.