Wednesday, 13 December 2017 | MYT 12:00 AM
RM5.1bil financing secured
Petronas and partners get funding for Pengerang project
PETALING JAYA: Petroliam Nasional Bhd (Petronas) and its three partners building the PT2SB industrial terminal in Pengerang, Johor have secured US$1.25bil (RM5.1bil) in financing from nine banks.
The other partners are Dialog Group Bhd, the Johor state government and Royal Vopak.
Vopak, an independent tank storage company, started work on the industrial terminal in early 2015. It is scheduled for commissioning in various phases during the first half of 2019.
This terminal will serve the world-scale Petronas Refinery and Petrochemicals Integrated Development (Rapid) project as its main customer.
PT2SB will have an initial storage capacity of 1.65 million cu m for crude, refined products, petrochemical products and liquefied petroleum gas.
The marine infrastructure includes 12 berths. The draft of 24m can also accommodate very large crude carriers.
Vopak said the project cost is about US$1.6bil, of which about 20% will be funded with equity contributions by shareholders. The remaining 80% would be project financing from the nine banks.
The final maturity of the financing facility is 15 years while repayment schedule starts after commissioning.
The financing is initially based on variable interest rates and PT2SB will enter into financial hedge instruments to reduce the potential interest exposure.
Vopak executive vice-chairman and CFO Jack de Kreij said: “This capital efficient funding of the project also creates significant additional financial flexibility for our company.”
The syndicate of banks consists of AmInvestment Bank, DBS, ING Bank, Maybank, MUFG, Natixis, OCBC, SMBC, and UOB. These banks all acted as mandated lead arrangers. SMBC acted as financial advisor and Allen & Overy acted as international legal advisor with PNC as Malaysian counsel to PT2SB.
The syndicate of nine banks were advised by Norton Rose Fulbright as International counsel and ASL as Malaysian counsel.