$1.25bn funding secured for PT2SB joint venture

PT2SB, a joint venture between Petroliam Nasional Berhad (PETRONAS), Dialog Group Berhad (Dialog), The state of Johor (SSI) and Royal Vopak announced that it has signed a $1.25bn financing agreement with an international banking syndicate.

The capital will be used to finance the PT2SB industrial terminal in Pengerang, State of Johor, Malaysia. The construction of PT2SB started in early 2015 and is scheduled for commissioning in various phases during the first half of 2019.

This industrial terminal will predominantly serve the world scale PETRONAS Refinery and Petrochemicals Integrated Development project (RAPID) as its main customer. PT2SB will have an initial storage capacity of 1.65 million cubic meters for crude, refined products, petrochemical products and Liquefied Petroleum Gas (LPG). The marine infrastructure includes 12 berths with a draft of  24 meters can also accommodate very large crude carriers.

The project costs are estimated around $1.6bn, of which approximately 20% will be funded with equity contributions by the shareholders and approximately 80% is provided in the form of project financing through the abovementioned banking syndicate.

Vice-Chairman of the Executive Board and CFO of Vopak, Jack de Kreij said: “We are proud that we have been able to secure the financing for this flagship project and we are very pleased with the commitment demonstrated by nine relationship banks participating in the financing of this project. This capital efficient funding of the project also creates significant additional financial flexibility for our company.”

For more information visit www.vopak.com

12th Dec 2017