Sembcorp Marine secures $1.5bn loan facility from parent

Sembcorp Marine secures $1.5bn loan facility from parent

Singapore’s Sembcorp Marine has been awarded a five-year S$2bn ($1.5bn) subordinated loan from its controlling shareholder, Sembcorp Industries.

Sembcorp Industries expects the loan will strengthen Sembcorp Marine’s financial position amidst the current downturn in the global offshore and marine industry.

Sembcorp Marine will use the loan to retire approximately S$1.5bn of borrowings and the balance for working capital and general corporate purposes.

Sembcorp Industries will issue S$1.5bn of bonds to DBS Bank as sole lead manager and initial purchaser through a private placement. Temasek is one of the bonds’ investors. The remaining  S$500m will be funded by Sembcorp Industries’ existing available resources and facilities.

Earlier this year, Sembcorp Marine announced that it is shuttering its Tanjong Kling yard by the end of this year, four years ahead of schedule.

 

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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