Sapura Energy Refinances $2.5B in Debt

Published

File Photo - Credit: Sapura Energy
File Photo - Credit: Sapura Energy

Malaysia's largest oil and gas services provider Sapura Energy on Tuesday said it has refinanced 10.3 billion ringgit ($2.48 billion) of its debt for a period of seven years.

The company said the refinancing includes an $820 million term loan facility to be offered by banks in U.S. dollars and Malaysian ringgit, and the issuance of unrated sukuk murabahah for the remaining amount.

"The refinancing exercise and previously announced 1.2 billion ringgit working capital provides us timely financial headroom in a recovering energy market," Sapura Chief Executive Officer Mohd Anuar Taib said in a statement.

The refinancing is subject to Malaysian fund Permodalan Nasional Berhad remaining the largest shareholder of Sapura with more than 33% ownership, Sapura said.

Permodalan Nasional is one of country's largest fund managers.

Sapura, hurt by weak energy demand during the coronavirus crisis, launched an austerity drive and cut jobs last year after posting a loss from continuing operations of 4.23 billion ringgit.

Shares of Sapura closed up 3.45% on Tuesday.

($1 = 4.1490 ringgit) 

(Reporting by A. Ananthalakshmi Editing by Ed Davies)

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