Hengyuan Refining Company Establishes Unrated Medium Term Notes Programme of Up to RM5.0 Billion and Signs Multi-Currency Revolving Credit Facilities
Monday, 12 September 2022 – Hengyuan Refining Company Berhad (“HRC”), a landmark refinery operator in Port Dickson, is establishing an unrated medium term notes programme (“MTN Programme”) of up to RM5.0 billion in nominal value; and has secured multi-currency revolving credit (“RC”) facilities of up to USD235.0 million and RM250.0 million.
The establishment of the unrated MTN Programme will be issued in tranches, over tenure of 30 years via bought deal or private placement with AmInvestment Bank Berhad and Maybank Investment Berhad as the Joint Principal Advisers, Joint Lead Arrangers and Joint Lead Managers; and Malaysian Trustees Berhad as the Trustee. The multi-currency RC Facilities are offered by AmBank (M) Berhad, China Construction Bank Corporation Labuan Branch and Malayan Banking Berhad.
Funds attained through the MTN Programme and RC Facilities will be utilised towards refinancing existing loans, funding the medium-term growth and working capital of HRC that will enable the Company to proceed with its planned upgrade and maintenance projects for the refinery.
Mr Wang YouDe, Chairman of Hengyuan Refining Company Berhad said, “This financing programme is an important decision-making to HRC’s ongoing efforts to maintain sustainability and help HRC reach its next level of growth. We are focused on driving the sustainability of our operations and long-term growth strategies which will aid in maintaining the company’s competitive advantage. On this note, we express our gratitude to the three banks participating in this financing exercise. We believe this will deliver greater value to HRC’s shareholders and stakeholders.”
Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group said, “We are pleased to support HRC in driving its ambition to rejuvenate and revamp its refining operations which will pave way towards a more sustainable and greener downstream operations. We hope the financing programme will allow HRC to optimise its capital structure and tap on future opportunities in the greener energy market. The 30-year MTN Programme will further strengthen the relationship between HRC and the Bank and represents a new milestone in the oil and gas industry of which our monies are being used to raise the efficiency of their refinery to further reduce Hengyuan’s ESG footprint. This is aligned with the industry’s collective aspiration to achieve net zero carbon emission by 2050, as targeted by most of the world’s energy majors. The financial industry plays a pivotal role in contributing to capital-intensive projects in the oil and gas sector as it not only fuels the country’s economic growth, but also stimulates high-income job opportunities for the people. This partnership is aligned to the nation’s economic revitalisation and development aspirations.
Dato’ Fad’l Mohamed, Chief Executive Officer of Maybank Investment Bank said, “Maybank Investment Bank is pleased to support HRC end-to-end, culminating with the establishment of its MTN Programme and the RC Facilities. The upcoming issuance of MTN under the MTN Programme will mark HRC’s inaugural entry into the Malaysian debt capital market. As the leading investment bank in Malaysia, Maybank Investment Bank will continue to leverage our deep local knowledge and strong regional links to support global players such as HRC to further deepen and broaden Malaysia’s debt market.”
Wong Qijie, Principal Officer of CCB Labuan said, “From the establishment in 2019, CCB Labuan has aligned with the vision and focus of our Head Office, CCB, to strengthen further the ties between Malaysia and China, support projects aligned with the Belt and Road Initiative, and provide innovative financial products and services for customers in Malaysia. We are pleased to offer the USD RC Facility together with two other local banks, AmBank (M) Berhad and Malayan Banking Berhad to HRC. Going forward, CCB Labuan is committed in providing total banking solutions and support to corporations operating in key sectors of the Malaysian economy, including those related to industrial production, green and renewable energy, infrastructure ecosystem, etc.”