Hengyuan secures RM1.7b credit line

Hengyuan secures RM1.7b credit line
-A +A

KUALA LUMPUR (Jan 23): Hengyuan Refining Co Bhd has secured US$430 million (RM1.7 billion) financing facilities from three banks to partly refinance its existing term loan and its planned capital expenditure (capex).

In a statement today, Hengyuan said bilateral agreements were signed with Ambank (M) Bhd — Labuan Offshore Branch, China Construction Bank (Malaysia) Bhd (CCB) and Maybank International Labuan Branch.

The facilities consist of a term loan and a revolving credit line. The term loan will be used to refinance the company's existing term loan and planned capex, while the revolving credit facility is for working capital.

"The term loan will be repaid in instalments throughout the tenure of the five-year facility. Approval for the facilities was received from Bank Negara Malaysia yesterday," Hengyuan said.

AmInvestment Bank Bhd is the mandated lead arranger, facility agent and security agent for the facilities while MayBank Investment Bank Bhd and CCB are the joint lead arrangers.

Hengyuan chairman Wang YouDe said the financing scheme will provide it with additional financing required to fuel its planned upgrades and maintenance projects for the refinery.

"Moving forward, Hengyuan will continue to review all aspects of our operations to maximise efficiencies and cost savings," he added.

Hengyuan shares closed down 10 sen or 0.7% at RM14.20 today, with 1.66 million shares done, bringing a market capitalisation of RM4.26 billion.