Singapore readies up to $1.1 bln in loans for oil & gas-linked firms

Swiber Holdings

25/11/2016 10:26

SINGAPORE, Nov 25 (Reuters) - Singapore plans to offer 
financial assistance to its liquidity-hit marine and offshore 
engineering companies that could help them raise as much as 
S$1.6 billion ($1.1 billion) in loans. 
    The two-year downturn in oil prices has forced several 
firms, including oilfield services firm Swiber  SWBR.SI , oil 
and gas service provider Swissco Holdings Ltd  SWCO.SI  and 
container ship owner Rickmers Maritime  RIMT.SI , to seek 
restructuring of their debt. 
    Billions of dollars have been wiped off the market value of 
the sector's listed companies and thousands of jobs have been 
axed in the worst-hit area of Singapore's slowing economy. 
    Many of the companies in the affected sectors have not been 
able to issue debt or get bank loans. 
    Singapore's Ministry of Trade and Industry (MTI) said in a 
statement on Friday the loans it is organising will be available 
from next month and could "catalyse" about S$1.6 billion in 
total financing to the sector over the next year.  
    The MTI said it will introduce a scheme allowing affected 
companies to borrow up to S$5 million for up to six years. A 
borrower group can tap financing of up to S$15 million. 
    A separate finance scheme aimed at assisting with project 
and asset financing support will be enhanced so that the maximum 
loan will be raised to S$70 million per borrower group from the 
current S$30 million, it said. 
    The statement did not provide any details on the financing 
costs. The facilities will be administered by government 
agencies SPRING and IE Singapore through local banks. The 
government will take 70 percent of the financing risk for both 
the schemes.  
    "The industry's financing challenges have intensified in 
recent months. Some industry consolidation is inevitable as 
companies restructure and adapt to the challenging environment," 
Minister for Trade and Industry S Iswaran said. 
    "The government will continue to monitor the economy closely 
and stands ready to act if necessary."  
    Those that qualify for the scheme include shipyards and 
their contractors, exploration, production and offshore services 
firms, oil and gas equipment and services companies and their 
suppliers. 
($1 = 1.4279 Singapore dollars) 
 
 (Reporting by Marius Zaharia; Editing by Muralikumar 
Anantharaman) 
 ((marius.zaharia@thomsonreuters.com; +65 6403 5657; Reuters 
Messaging: marius.zaharia.thomsonreuters.com@reuters.net)) 
 
Keywords: SINGAPORE ENERGY/LOANS