Bumi Armada Bhd, an offshore field services provider, has secured a RM1.08 billion loan from seven local and international banks.
The money will be used to finance costs related to the conversion and installation of its floating, production, storage and offload (FPSO) vessel called Armada TGT 1.
The vessel has been deployed to operate in the Te Giac Trang field offshore Vietnam.
Bumi Armada, via its subsidiary Armada TGT Ltd, yesterday signed a long-term loan agreement with the seven banks.
They are Sumitomo Mitsui Banking Corp, CIMB Bank Bhd, ING Bank NV, Maybank Investment Bank Bhd, OCBC Bank (Malaysia) Bhd, RHB Investment Bank Bhd and the Bank of Tokyo-Mitsubishi UFJ Ltd.
Bumi Armada chief executive officer Hassan Assad Basma said the financing underpins its ability to deliver major projects during the current uncertainties in the global economy.
Armada TGT 1 was completed on schedule and achieved first oil on August 22 2011, with final acceptance received on November 30.
The vessel is operating in Block 16-1 of the Te Giac Trang field, offshore Vietnam, for Hoang Long Joint Operating Company.
On why the loan deal was only signed now although the vessel was completed and delivered to the client for some time, Bumi Armada chief financial officer Shaharul Rezza Hassan said as stated in its prospectus for listing, the company has a lot of short-term loans that it has to repay within one year.
"We have effectively used these bridging loans and now we are going for a long-term financing for seven years. This proved to be cost-efffective," he said.
Bumi Armada serves clients in over 10 countries across Asia, Africa and Latin America.
It provides offshore services via four main business units and two support units.
The main business units are the FPSO, offshore support vessels (OSVs), transport and installation, and oilfield services.
They are complemented by two support units which are fleet management services and engineering, procurement and construction.
With over 40 OSVs, three FPSOs in operation (and two more under conversion) and a derrick pipe-lay barge, Bumi Armada is the largest OSV owner operator in Malaysia and the sixth largest FPSO operator in the world.
The money will be used to finance costs related to the conversion and installation of its floating, production, storage and offload (FPSO) vessel called Armada TGT 1.
The vessel has been deployed to operate in the Te Giac Trang field offshore Vietnam.
Bumi Armada, via its subsidiary Armada TGT Ltd, yesterday signed a long-term loan agreement with the seven banks.
They are Sumitomo Mitsui Banking Corp, CIMB Bank Bhd, ING Bank NV, Maybank Investment Bank Bhd, OCBC Bank (Malaysia) Bhd, RHB Investment Bank Bhd and the Bank of Tokyo-Mitsubishi UFJ Ltd.
Bumi Armada chief executive officer Hassan Assad Basma said the financing underpins its ability to deliver major projects during the current uncertainties in the global economy.
Armada TGT 1 was completed on schedule and achieved first oil on August 22 2011, with final acceptance received on November 30.
The vessel is operating in Block 16-1 of the Te Giac Trang field, offshore Vietnam, for Hoang Long Joint Operating Company.
On why the loan deal was only signed now although the vessel was completed and delivered to the client for some time, Bumi Armada chief financial officer Shaharul Rezza Hassan said as stated in its prospectus for listing, the company has a lot of short-term loans that it has to repay within one year.
"We have effectively used these bridging loans and now we are going for a long-term financing for seven years. This proved to be cost-efffective," he said.
Bumi Armada serves clients in over 10 countries across Asia, Africa and Latin America.
It provides offshore services via four main business units and two support units.
The main business units are the FPSO, offshore support vessels (OSVs), transport and installation, and oilfield services.
They are complemented by two support units which are fleet management services and engineering, procurement and construction.
With over 40 OSVs, three FPSOs in operation (and two more under conversion) and a derrick pipe-lay barge, Bumi Armada is the largest OSV owner operator in Malaysia and the sixth largest FPSO operator in the world.
