PETALING JAYA: UMW Oil & Gas Corp Bhd (UMW OG), through wholly owned subsidiaries Sumber Ribu Sdn Bhd and Sumber Wang (L) Ltd, has entered into a common terms agreement for syndicated facilities of US$550 million (RM2.3 billion).
Sumber Ribu has entered into a US dollar (USD) commodity murabahah revolving credit facility-i of US$110 million and a ringgit (RM) commodity murabahah revolving credit facility-i of RM110 million, with an option to upsize the RM Islamic revolving facility by RM90 million.
Proceeds from the facilities will be used to refinance existing working capital and similar indebtedness; for working capital; and payment of expenses for the exercise.
UMW OG also entered into a USD Islamic trade facility of US$47 million and, to the extent any financier is unable to participate in the USD Islamic trade facility, a USD conventional trade facility, and a RM Islamic trade facility of RM15 million and, to the extent any financier is unable to participate in the RM Islamic trade facility, an RM conventional trade facility.
The proceeds will be used for working capital, as well as hedging arrangements related to operations.
The tenure of the revolving facilities is up to 10 years, comprising an initial firm period of three years and annual renewal thereafter.
Meanwhile, Sumber Wang (L) Ltd entered into a five-year USD commodity murabahah term financing facility-i of US$145 million and a 10-year USD commodity murabahah term financing facility-i of US$220 million.
The proceeds will be used to refinance borrowings to ensure that the maturity profile of the relevant facilities better match the long-term useful life of its assets; and the payment of costs and expenses and hedging arrangements of the facilities.
Approval for the facilities has been obtained from Bank Negara Malaysia. Shareholders’ approval is not needed.
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