Sembcorp Industries has, through its wholly-owned subsidiary, Sembcorp Energy (Shanghai) Holding Co., Ltd. (SESH), signed a dual currency denominated revolving credit facility with DBS Bank (Hong Kong) Limited.
The revolving credit facility, which is guaranteed by Sembcorp Utilities, will provide Sembcorp access to RMB400 million ($74.7 million) or an equivalent amount in Hong Kong dollars (HKD). The facility has an initial tenure of three years with the option to extend for another two years.
According to Sembcorp, it will use the facility for general corporate purposes including refinancing, capital expenditure, working capital, equity investments, and funding mergers and acquisitions in China.
The country is said to be a key market for Sembcorp, with the group seeing attractive opportunities in the renewable sector there.
The establishment of this offshore RMB facility enhances the group’s capital base to fund its growth, says Sembcorp.
As at 9.13am, shares in Sembcorp are trading 1 cent higher or 0.19% up at $5.41.
