AsiaFinance and InsuranceOffshore

Bumi Armada secures $75m financing support from major shareholder

Malaysian offshore service provider Bumi Armada has received up to RM317m ($75m) of financing from Mezzanine Equities, a unit of its largest shareholder Usaha Tegas, owned by billionaire T Ananda Krishnan.

According to Bumi Armada, the financing was awarded to two of its wholly-owned units, and it comprises of a three-year term loan facility of up to $30m to Bumi Armada 98/2 Holdings and a six-year term loan facility of about $45m to Armada Floating Gas Storage Malta.

The facility will fund Bumi Armada’s 30% equity interest in a joint-venture project with Shapoorji Pallonji Oil & Gas in relation to a FPSO facility contract in India.

Mezzanine Equities has also been granted options to acquire Bumi Armada’s 30% interest in the project.

Bumi Armada reported a net profit of RM78.21m in the second quarter following several consecutive quarters of losses.

Earlier this month, Bumi Armada sold its Armada Perdana FPSO for $40m.


Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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