Seatrium’s wholly-owned subsidiary Seatrium Financial Services has secured a three-year $1.1 billion committed global syndicated bank guarantee (BG) facility with the support of a group of eight leading financial institutions.
DBS Bank and Standard Chartered Bank acted as the global coordinators for the BG facility.
The facility — which comes with a flexible structure that is a first-of-its-kind in the offshore and marine industry in Singapore — will support Seatrium’s project needs for future business growth, the company says in a filing.
As its first syndicated BG facility, Seatrium received backing from existing banking partners, including DBS, Standard Chartered, Shanghai Pudong Development Bank’s Singapore branch, and Mizuho Bank’s Singapore branch.
In addition, Seatrium established new relationships with several other banks and financial institutions, including First Abu Dhabi Bank’s Singapore branch, Malayan Banking’s Singapore branch, Emirates NBD Bank’s Singapore branch and Clifford Capital.
The BG facility will strengthen Seatrium’s capital structure, laying the foundation of its long-term sustainable business growth, says its CFO Adrian Teng.
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“Closing on this facility is the culmination of the collaborative efforts between Seatrium and its esteemed banking partners, demonstrating their trust and confidence in Seatrium’s strategic operating model and business outlook,” he adds.
Shares in Seatrium closed 12 cents higher or 8% up on July 29 at $1.62.
