ChemOne signs US$300 mn financing with MUFG for Pengerang complex
Singapore-based petrochemicals, green energy and natural resources conglomerate, ChemOne Group, master developer of Malaysia’s mega petchem project Pengerang Energy Complex, in Johor Bahru, has announced the signing of a binding definitive facility agreement with MUFG Bank (Malaysia) Berhad, a part of financial services group Mitsubishi UFJ Financial Group (MUFG).
A key part of the PEC Project Finance package is a US$300 million non-recourse receivables purchase facility to discount invoices of finished product sales to offtakers. The signed facility agreement with MUFG confirms its participation for US$200 million under this facility. Furthermore, there is a US$100 million accordion option available under this facility.
Alwyn Bowden, CEO of Pengerang Energy Complex Sdn Bhd, said: “We’re pleased to put in place robust banking arrangements to enable significant improvement in working capital cycle and cash flow management through this discounting facility successfully concluded with MUFG. This partnership with MUFG is an important move for us as we rapidly move towards the project’s Financial Close, bringing PEC’s financing potential to the expertise of one of the largest banking institutions in Japan and globally.”
