Thursday 28 Mar 2024
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KUALA LUMPUR (March 30): Sapura Energy Bhd's wholly-owned unit Sapura TMC Sdn Bhd has executed multi-currency financing facilities to raise over RM10.3 billion.

In a filing today, Sapura Energy said the facilities comprise two term loan facilities of approximately US$602 million (RM2.5 billion) and RM906 million respectively, and unrated sukuk murabah amounting to US$125 million (RM518.5 million) and RM6.38 billion.

The facilities have a tenure of seven years and are guaranteed by Sapura Energy. It comes with the condition that its largest shareholder, Permodalan Nasional Bhd (PNB), continues to have over 33% in the oil and gas (O&G) outfit in the period. PNB currently holds a 40.1% equity interest in the company.

Sapura TMC has inked a conventional facilities agreement with Malaysian, regional and international banks for the two term loan facilities. The sukuk murabahah was executed with a consortium of Malaysian banks under its Multi-Currency Sukuk Programme, 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,” it said.

The refinancing exercise has been long-awaited by the company, which has been swinging between profit and huge losses since 2016. As at end-October 2020, the group had borrowings of RM10.45 billion, comprising short-term loans of RM3.29 billion and long-term loans of RM7.16 billion.

“The proceeds from the MCF 2021 shall be utilised towards full settlement of all amounts payable and outstanding by Sapura TMC under a 2014 conventional facility, a 2015 Islamic facility, a 2017 conventional facility and the existing outstanding sukuk murabahah under the Multi-Currency Sukuk Programme,” Sapura Energy said.        

“The refinancing exercise and previously announced RM1.2 billion in working capital provide us timely financial headroom in a recovering energy market," said Sapura Energy group chief executive officer (CEO) Datuk Mohd Anuar Taib.

“This will allow us to continue our track record of winning new O&G contracts, and explore emerging opportunities in the renewable energy sector,” Mohd Anuar said.

Shares in Sapura Energy were half a sen or 3.45% higher at 15 sen at the time of writing today, valuing the group at RM2.4 billion.

Edited ByTan Choe Choe
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