Hibiscus says the funds will be used primarily to drive the group’s organic growth plans for its current producing and development assets, as well as for working capital.
PETALING JAYA: Hibiscus Petroleum Bhd
, via its direct wholly-owned subsidiary Asia Hibiscus Sdn Bhd, has entered into its maiden long-term debt facility agreement for a total of US$120mil (RM553.7mil).
The deal was signed yesterday with four banks – HSBC Bank Malaysia Bhd, Bank of China Malaysia Bhd, Industrial and Commercial Bank of China (M) Bhd and Standard Chartered Bank Malaysia Bhd.
Hibiscus said in a statement the facility comprises a US$99mil (RM440.3mil) term loan and a US$21mil (RM93.4mil) revolving credit facility.
It said the facility will be used primarily to drive the group’s organic growth plans for its current producing and development assets, as well as to fund working capital requirements.
“We are delighted to have been able to develop a banking relationship with this consortium of banks which is supporting us with a flexible debt facility. We would like to sincerely thank them for their confidence and trust.
“Our geographical footprint covers South-East Asia and the United Kingdom Continental Shelf and we believe this grouping of reputable financial institutions will provide the ideal foundation upon which we can build and grow a sustainable business in the years to come in these regions.
“We are excited by the opportunity to work together, humbled by the trust that has been extended and cognizant of our responsibilities in this partnership,” said managing director Dr Kenneth Gerard Pereira.
“Our relationship with Hibiscus is an example of what can be achieved through great collaboration with our prospective and existing client base,” said HSBC Malaysia head of commercial banking Karel Doshi.
