Singapore-based Seatrium has announced that its subsidiary, Seatrium Financial Services, has secured a three-year €756 million Committed Global Syndicated Bank Guarantee (BG) facility. This funding, supported by a group of eight leading financial institutions, is intended to finance the company's future engineering projects, including contracts aimed at expanding the Dutch grid for TenneT.
DBS Bank and Standard Chartered Bank acted as the Global Coordinators for the S$1.1 billion BG facility. This facility, noted for its flexible structure, marks a first in Singapore's offshore and marine industry and aims to support Seatrium's future business growth.
As Seatrium's first syndicated BG facility, it has received strong backing from its existing banking partners, which include DBS Bank, Standard Chartered Bank, Shanghai Pudong Development Bank Co, and Mizuho Bank. Additionally, Seatrium has established new relationships with several prominent banks and financial institutions, including First Abu Dhabi Bank PJSC, Malayan Banking Berhad, Emirates NBD Bank (PJSC), and Clifford Capital.
“This S$1.1 billion Syndicated BG Facility will support Seatrium in meeting the bank guarantee requirements for future projects, strengthening our capital structure, and laying the foundation for our long-term sustainable business growth,” stated Adrian Teng, Seatrium's chief financial officer.
The closing of this facility is the result of collaborative efforts between Seatrium and its banking partners, reflecting their confidence in Seatrium's strategic model and business outlook.
Kelvin Wong, head of energy, renewables, and infrastructure at DBS, highlighted the significance of their partnership with Seatrium: “Our longstanding partnership with Seatrium has allowed us to gain a deep understanding of its business needs, as well as its commitment towards being a sustainability leader in the global offshore, marine, and energy industries. We are pleased to be partnering Seatrium once again, this time as a global coordinator on this Syndicated Bank Guarantee Facility, which we believe will be instrumental in supporting their future growth objectives in the renewable energy sector.”
Chow Wan Thonh, head of banking and coverage for Singapore and ASEAN at Standard Chartered Bank, expressed support for Seatrium's initiatives: “We are pleased to support Seatrium in its inaugural syndicated Bank Guarantee Facility, which will help to further the Group's plans for expansion in future growth opportunities. This is aligned to Standard Chartered's commitment to propel meaningful development across industries locally and globally, through the delivery of innovative financing solutions.”
