Highlight SapuraKencana refinances RM16.5b of debts, coordinated by Maybank and CIMB
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Highlight SapuraKencana refinances RM16.5b of debts, coordinated by Maybank and CIMB
Highlight SapuraKencana refinances RM16.5b of debts, coordinated by Maybank and CIMB
Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 20 March 2014 13:45
KUALA LUMPUR (March 20): SapuraKencana Petroleum Bhd announced it has signed a RM16.5 billion (US$5 billion) “refinancing club deal” with 13 local, regional and international banks.
Maybank Investment Bank and CIMB Investment Bank were the Coordinating Banks while Maybank Investment Bank acted as the Agent and the Security Agent, said the company in a statement.
“The refinancing program was put in place to replace and streamline facilities that were inherited following the merger of SapuraCrest Petroleum and Kencana Petroleum in 2012.
“It was also undertaken for the financing of the group's two most recent acquisitions the Seadrill tender-rig business and the purchase of the entire equity interest in Newfield Malaysia Holding Inc," said the company.
The “club deal” constitutes a senior multicurrency term and revolving facilities with short and long-term tenures of up to seven years, added the statement.
About 80% or RM13 billion of the refinancing package is dedicated for assets that are fully contracted out to international oil companies and national oil companies.
And about 70% of the borrowings are in US dollars to hedge against the businesses SKPB engages in.
SapuraKencana added the company will enjoy incentives that include exemption from withholding tax on interest payments/profits on borrowings, exemption from stamp duty on all financing agreements as well as flexibilities in Foreign Exchange Administration (FEA).
"The completion of the refinancing program is indeed a strategic milestone for the group post the 2012 merger.
“It is an endorsement of the sustainability of our business as a fully integrated upstream company and demonstrates confidence in our business direction and growth prospecints," said SapuraKencana President and Group CEO Tan Sri Shahril Shamsuddin.
He said the interest from lending institutions was “overwhelming” and exceeded the RM16.5 billion that was required by the group.
“Approximately 80% of the group’s projected EBITDA for the next three years is already secured by contracts.
“We believe the ability to demonstrate this strong and visible earnings for the group was one of the main contributors for the overwhelming interest shown by the banks to support our company." said Shahril in the statement.
Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 20 March 2014 13:45
KUALA LUMPUR (March 20): SapuraKencana Petroleum Bhd announced it has signed a RM16.5 billion (US$5 billion) “refinancing club deal” with 13 local, regional and international banks.
Maybank Investment Bank and CIMB Investment Bank were the Coordinating Banks while Maybank Investment Bank acted as the Agent and the Security Agent, said the company in a statement.
“The refinancing program was put in place to replace and streamline facilities that were inherited following the merger of SapuraCrest Petroleum and Kencana Petroleum in 2012.
“It was also undertaken for the financing of the group's two most recent acquisitions the Seadrill tender-rig business and the purchase of the entire equity interest in Newfield Malaysia Holding Inc," said the company.
The “club deal” constitutes a senior multicurrency term and revolving facilities with short and long-term tenures of up to seven years, added the statement.
About 80% or RM13 billion of the refinancing package is dedicated for assets that are fully contracted out to international oil companies and national oil companies.
And about 70% of the borrowings are in US dollars to hedge against the businesses SKPB engages in.
SapuraKencana added the company will enjoy incentives that include exemption from withholding tax on interest payments/profits on borrowings, exemption from stamp duty on all financing agreements as well as flexibilities in Foreign Exchange Administration (FEA).
"The completion of the refinancing program is indeed a strategic milestone for the group post the 2012 merger.
“It is an endorsement of the sustainability of our business as a fully integrated upstream company and demonstrates confidence in our business direction and growth prospecints," said SapuraKencana President and Group CEO Tan Sri Shahril Shamsuddin.
He said the interest from lending institutions was “overwhelming” and exceeded the RM16.5 billion that was required by the group.
“Approximately 80% of the group’s projected EBITDA for the next three years is already secured by contracts.
“We believe the ability to demonstrate this strong and visible earnings for the group was one of the main contributors for the overwhelming interest shown by the banks to support our company." said Shahril in the statement.
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