Seatrium secures SGD 500 million in revolving credit facility with DBS, HSBC and Standard Chartered

Singapore-headquartered marine engineering firm Seatrium, formed by the merger of Sembcorp Marine and Keppel Offshore and Marine (KOM), on Friday (29 December) announced that its wholly-owned subsidiary, Seatrium Financial Services Pte. Ltd. (SFS) has secured a SGD 500 million (USD 378) committed revolving credit loan facility (RCF).

The RCF was arranged by DBS Bank Limited, The Hongkong and Shanghai Banking Corporation Limited (HSBC) and Standard Chartered Bank (Singapore) Limited.

The firm said the RCF will provide additional funding and liquidity to Seatrium, increasing its financial flexibility. Seatrium acted as the guarantor for SFS and HSBC was the loan facility agent.

Mr Paul Tan, Acting Group Finance Director, Seatrium, said: “As part of the Group’s proactive capital management, the SGD 500 million committed revolver will support our business operations and other strategic business needs. Securing the revolving credit facility not only bears testament to Seatrium’s financial strength and business outlook, but also reflects the strong support from top financial institutions for the growth of the offshore, marine and energy industries in Singapore. We would like to express our appreciation to our relationship banks for their unwavering support and trust.”

Mr Lim Wee Seng, Group Head of Energy, Renewables and Infrastructure, Institutional Banking Group, DBS Bank, said, “DBS Bank is pleased to be part of this inaugural club loan to provide Seatrium with funding for strategic growth and new opportunities. As a leading financial institution in Asia, we are committed to helping companies compete on the global stage and strengthening Singapore’s position as a key hub for business.”

Mr Lim Jit Min, Managing Director and Head of Large Local Corporates, Global Banking, HSBC Singapore, said, “HSBC has a longstanding relationship with Seatrium. We are pleased to play a role in supporting the company’s growth aspirations. This new facility will enable Seatrium to expand its business further, especially as opportunities in the area of energy transition gathers momentum.”

Mr Freddy Ong, Head of Client Coverage, Singapore, Corporate, Commercial and Institutional Banking, Standard Chartered Bank (Singapore) Limited, said, “We are delighted to further strengthen our longstanding partnership with Seatrium Group in their growth and expansion plans. With our extensive regional and global footprint, coupled with our innovative solutions, we are well placed to support Seatrium in their sustainable growth agenda.”

In addition to this latest RCF, Seatrium has secured green trade finance and sustainability-linked facilities exceeding SGD 2 billion to augment its sustainability efforts and green investments in the offshore renewables space.

Related: Singapore-based firm Sembcorp Marine proposes name change to Seatrium

Photo credit: steve pb from Pixabay
Published: 2 January, 2024