UAE-based Topaz Energy and Marine, a leading oilfield services multinational and subsidiary of Renaissance Services, has announced a US$ 380 million financing initiative, led by Standard Chartered Bank and DVB Bank.
The initiative will involve both regional and international lenders in a refinancing deal that features Topaz's offshore support vessel (OSV) division, Topaz Marine, which ranks among the top ten OSV operators world-wide.
In its half-year statement, the parent-company Renaissance Services, publicly listed in Oman's Muscat Securities Market, stated its intention to refinance some existing borrowings and consolidate financing facilities with a syndicate of banks.
Vishal Goenka, Chief Financial Officer of Renaissance, said, "This deal will significantly improve Topaz's liquidity, unlock trapped equity, and increase the availability of new funds to capitalize on future growth opportunities. The interest from our relationship banks and also from new banks in this deal is very encouraging and reaffirms the market's appreciation of the company's business model and governance. Out of US$ 380 million, approximately US$ 125 million is for vessels under construction and for investments in new vessels. "
Goenka added that the company expects the financing initiative to be completed before the end of December 2011.
Strong Support
"This financing, including a hunting license for additional vessel growth, puts Topaz in a unique position to accelerate from an enhanced balance sheet platform," said Geir Sjurseth, Managing Director & Global Head Offshore Support Group of DVB Bank.
DVB Bank, which specializes in global offshore finance, is an active player in the Middle East market. "We are delighted to expand our excellent relations with Topaz and its parent company Renaissance to support the company's continued growth objectives. DVB has gained considerable expertise dealing with Topaz through its MENA, Caspian and non-Caspian vessel operations, and we will continue to support the leading OSV operator in its core markets," added Sjurseth.
Commenting on the alliance, Nigel Anton, Managing Director and Head of Shipping Finance at Standard Chartered Bank, said, "Standard Chartered is delighted to be able to strengthen our relationship by supporting Topaz with their ambitious growth plans; our co-arrangement of this transaction together with DVB Bank underpins our belief in the future success of Topaz. Standard Chartered as a well-capitalized and liquid bank remains fully committed to the region and the shipping business."
-Ends-
On Renaissance Services SAOG:
Renaissance Services SAOG (Renaissance) is an Omani multinational company listed on the Muscat Securities Market (MSM30) in the Sultanate of Oman. Renaissance's core operations are focused on providing safe, efficient and quality services to energy leaders predominantly in the oil & gas industry. Renaissance currently employs over 11,000 people, operates in over 16 countries and has a proven track record of delivering outstanding growth. 2010 revenues were in excess of US$ 0.65 billion. Renaissance's core businesses are structured in three principle segments: Marine, Engineering and Contract Services. Renaissance also owns other smaller businesses in education and training, and media communications.
On Topaz Energy and Marine LLC:
Topaz Energy and Marine is a leading oilfield services company providing marine and engineering solutions to the global energy industry with primary focus on MENA and the Caspian Sea. Headquartered in Dubai and with more than 35 years of experience in the Middle East, Topaz operates a fleet of approximately 100 offshore support vessels and provides energy and marine engineering services. Topaz is a wholly owned subsidiary of Renaissance Services.
On Standard Chartered PLC:
Standard Chartered PLC is a leading international bank, listed on the London, Hong Kong and Mumbai stock exchanges. It has operated for over 150 years in some of the world's most dynamic markets and earns around 90 per cent of its income and profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank's growth in recent years. With 1,700 offices in 70 markets, Standard Chartered offers exciting and challenging international career opportunities for more than 80,000 staff.
On DVB Bank:
DVB enjoys a unique position, thanks to its strategic focus on the international transport market, with the submarkets of shipping, aviation, and land transport. As a highly-specialised niche provider, the Bank offers a broad range of customised financial services. With offices in 13 locations, DVB has a worldwide presence in the transport markets and their various segments. This global presence enables DVB to take into account both the international dimension and the local specifics of the markets in which our clients in Shipping, Aviation and Land Transport Finance operate.
For media inquiries please contact
Hala Srouji
Corporate Communication Manager, Renaissance Services
hala@tawoos.com
© Press Release 2011
