KUALA LUMPUR, March 11 (Bernama) -- Sapura Energy Bhd (SEB) has secured RM1.1 billion in investment from Malaysia Development Holding Sdn Bhd (MDH) through the latter's subscription of the company’s nominal value of redeemable convertible loan stocks (RCLS).
In a statement today, SEB said it has entered into a conditional funding agreement with MDH, marking another significant milestone in its financial restructuring efforts, reinforcing its commitment to long-term sustainability.
MDH, a special purpose vehicle of the Minister of Finance (Incorporated), has specified that proceeds of the subscription are only intended to be used for the settlement or payment of liabilities owed by the SEB Group to Malaysian service providers operating in or supporting the oil and gas sector in Malaysia.
“This funding is a pivotal step in restoring the financial stability of Malaysian vendors within the oil and gas ecosystem, which had taken years to build.
“Our Malaysian vendors are predominantly small and medium enterprises (SMEs) who have endured significant financial hardship during and after the COVID-19 pandemic and it had always been our intention to fully settle overdue payables to them,” said SEB Group chief executive officer Muhammad Zamri Jusoh.
SEB said this investment follows strong support from creditors for its Composite Scheme of Arrangement involving SEB and 22 of its subsidiaries under Section 366 of the Companies Act 2016.
Muhammad Zamri added that the company is diligently working on a robust regularisation plan, which will bring the company one step closer to exiting its status as a PN17 company.
“We see SEB’s turnaround as part of the revitalisation of the Malaysian oil and gas, services and equipment sector, ensuring it is better positioned to support the nation’s energy security and sustainability goals, ultimately contributing to Malaysia’s economic development,” he added.
SEB supports some 2,300 Malaysian vendors and about 1,800 of these companies are SMEs.
The company has awarded RM7.3 billion in contracts to Malaysian vendors in the last five years.
-- BERNAMA
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