Hibiscus Petroleum raises US$120m via long-term debt facility

Hibiscus Petroleum raises US$120m via long-term debt facility
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KUALA LUMPUR (Nov 30): Hibiscus Petroleum Bhd has entered into its maiden long-term debt facility agreement with four banks — HSBC Bank Malaysia Bhd, Bank of China Malaysia Bhd, Industrial and Commercial Bank of China (M) Bhd and Standard Chartered Bank Malaysia Bhd — to raise US$120 million (RM533.7 million).

The facility — comprising a US$99 million term loan and a US$21 million revolving credit facility — will be used primarily to drive organic growth plans for current producing and development assets as well as to fund working capital requirements, the group said in a statement.

“Our geographical footprint covers Southeast Asia and the UK Continental Shelf, and we believe that this grouping of reputable financial institutions will provide the ideal foundation upon which we can build and grow a sustainable business in the years to come in these regions,” said Hibiscus Petroleum managing director Dr Kenneth Gerard Pereira.

Shares of Hibiscus Petroleum closed five sen or 4.7% higher at RM1.11, giving the group a market capitalisation of RM2.23 billion.

S Kanagaraju