Sapura Energy in $2.5bn debt refinancing

Malaysian energy services provider Sapura Energy has sealed the deal with a group of banks for a $2.5 billion debt refinancing for the duration of seven years.

Sapura said on Tuesday that its subsidiary, Sapura TMC, had executed multi-currency financing facilities agreements (MCF 2021) to refinance its existing borrowings.

The MCF 2021 was signed with a consortium of Malaysian, regional, and international banks.

It provides for financing with a combined value of approximately RM10.3 billion ($2.5 billion), for a tenure of seven years.

According to Sapura, it includes a Conventional Facility Agreement and further issuance of unrated Sukuk Murabahah under the Multi-Currency Sukuk Programme announced in 2015.

The planned refinancing is part of the company’s capital management program to lengthen the maturity of its debt.

“The refinancing exercise and previously announced RM1.2 billion working capital provides us timely financial headroom in a recovering energy market”, said Sapura Energy Group Chief Executive Officer, Datuk Mohd Anuar Taib.

“This will allow us to continue our track record of winning new oil & gas contracts; and explore emerging opportunities in the renewable energy sector”.

According to Reuters, the shares of Sapura closed up 3.45 per cent on Tuesday.

It is worth reminding that Datuk Mohd Anuar Taib has recently taken over the role of Sapura Energy CEO following the retirement of Tan Sri Shahril Shamsuddin after leading the group for more than 25 years.

In recent related news, the company in February 2021 announced global contract wins with a combined value of RM1.85 billion (about $457 million).

The new contract awards and extensions are for operations in Saudi Arabia, Malaysia, Thailand, and Brunei.

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