Energy Sengkang secures $88m loan facility from Standard Chartered
Friday, July 1 2011 - 02:56 AM WIB
Australia-listed firm Energy World Corporation Limited (EWC) announced Friday that its subsidiary, Energy Equity Epic (Sengkang) Pty. Ltd. (as Borrower) and Standard Chartered Bank and Mizuho Corporate Bank, Ltd. (as Lenders) have entered into a US$88 million secured borrowing base revolving loan facility.
EWC said that the loan will be used to fund certain of its operating costs and capital expenditure and general corporate expenses and to make certain inter-company loans.
The loan is repayable over a period of 61/2 years from revenues generated by Energy Equity Epic (Sengkang) Pty. Ltd. from the Sengkang PSC gas sales.
A portion of this loan will be used to repay the $60 million corporate loan facility extended by Standard Chartered Bank and Mizuho Corporate Bank, Ltd. that matured for payment on 30 June 2011 thus also releasing the LNG equipment assets originally pledged to the banks as security for this loan, it said.
The conclusion of this financing is further evidence of the support available to our group from our bankers for the financing of our development plans, the company added. (demas)