Hengyuan gets RM1.7b financing from AmBank, CCB, Maybank – Business News


KUALA LUMPUR:  Hengyuan Refining Company Bhd has secured financing facilities  totaling US$430mil or RM1.7bil from three banks for planned upgrades and maintenance projects for the refinery.

It had on Tuesday signed bilateral agreements with Ambank (M) Bhd – Labuan Offshore Branch (AmBank), China Construction Bank (Malaysia) Bhd (CCB) and Maybank International Labuan branch.

AmInvestment Bank is the mandated lead arranger, facility agent and security agent for the facilities and Maybank Investment Bank and CCB are the joint lead arrangers.

The facilities are segregated into a term loan and a revolving credit line. The term loan will be used to refinance Hengyuan’s existing term loan and also to partially finance its planned capital expenditure. The revolving credit facility will support the company’s working capital needs.

The term loan will be repaid in instalments throughout the tenure of the five-year facility.  Approval for the facilities was received from Bank Negara Malaysia on Monday.

Hengyuan chairman Wang YouDe said the financing agreement would provide the refiner with more favourable and flexible financing scheme to enhance our cash and debt management.

“The facilities would also provide Hengyuan with additional financing for the upgrades and maintenance for the refinery,” she added.

Wang said Hengyuan would also continue to review all aspects of its operations to maximise efficiencies and cost savings. 

AmInvestment Bank CEO and managing director of wholesale banking AmBank Group,  Raja Teh Maimunah said “We are pleased to participate in this US$430mil facilities to support Hengyuan’s upgrading plans to meet the Euro 4M mogas specifications. 

“We believe that this investment will strengthen Hengyuan’s long-term commitment to sustainable refining in Malaysia. By leveraging on improving refinery margins, we are confident that the outlook of Hengyuan will remain positive.” 

CCB treasurer and senior banker Gavin Wang Ziming said CCB plans to continue to support growing companies like Hengyuan. 

“The continued success of Hwngyuan is also important towards solidifying the close business relationship that Malaysia and China enjoy, Wang said.

Managing director of corporate banking, global banking of Maybank Michael Oh-Lau Chong Jin said the banking group was pleased to support the refiner’s  plans to upgrade its existing refinery via technology transfer and expand its value chain to wholesale trading and petrochemicals. 

“This investment also underpins the commitment from the new shareholder – Shandong Hengyuan Petrochemical Co. Ltd — in improving Hengyuan’s prospects and continue its contribution in the downstream activities in Malaysia’s oil and gas industry,” he said.

Read more : thestar

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