NewOcean Energy secures $169 million loan facility

Hong Kong-listed bunkering and liquefied petroleum gas (LPG) distributor NewOcean Energy Holdings (NewOcean) Monday secured total term loan facilities of HKD 1.32 billion (USD $168.662 million) with two tranches.

It will borrow HKD 1,128,100,000 (Tranche A) and HK$195,000,000 (Tranche B) “for the purpose of refinancing of any existing indebtedness of any member of the Group and financing the general working capital requirements of the Group.”

The interest rate is London Interbank Offered Rate plus 3.5% per annum for loan drawdown in tranche A and Hong Kong Interbank Offered Rate plus 3.5% per annum for loan drawdown in tranche B.

Mandated lead arrangers and original lenders of the loans were Hongkong and Shanghai Banking Corporation Limited, Cathy United Bank Company, Limited, Hang Seng Bank Limited, United Oversea Bank Ltd., Dah Sing Bank Limited, Standard Chartered Bank (Hong Kong) Limited and Sumitomo Mitsui Trust Bank, Limited.

NewOcean, in its latest move, signalled an intention to enter the bunkering market at Malaysia where it has also entered into a memorandum with a local state-owned enterprise to build an oil refinery.

The firm opened a branch office in Singapore during 2017 to handle bunkering and cargo purchasing operations.

Related: NewOcean Energy signals intent to enter Malaysia bunkering market
Related: NewOcean Energy net profit up 96%

Photo credit: NewOcean Energy Holdings
Published: 30 May, 2018