SEMBCORP Energy (Shanghai), a wholly owned subsidiary of Sembcorp Industries : U96 0%, signed a dual currency-denominated revolving credit facility with DBS (Hong Kong) for offshore funds amounting to 400 million yuan (S$76 million).
On Monday (Apr 1), Sembcorp said the facility comes with an initial tenure of three years, as well as a two-year extension option. It is guaranteed by Sembcorp Utilities.
Drawdowns from the facility will be used for general corporate purposes including refinancing, capital expenditure, working capital, equity investments, and funding mergers and acquisitions in China.
Highlighting the country as a key market for Sembcorp, the group said it “continues to see attractive opportunities in the renewables sector”.
It also noted that the cash flow generated from its existing portfolio of assets in China “forms the primary source of capital to meet (the group’s) growth plans”.
“The establishment of this offshore renminbi facility enhances the group’s capital base to fund its growth,” said Sembcorp.
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The counter closed S$0.01 or 0.2 per cent lower at S$5.40 on Thursday.
