Sarawak Petchem gets financing, hedging facilities from Maybank

KUCHING (July 23): Maybank is providing financing and hedging facilities to Sarawak Petchem for its first methanol production plant, which was officially launched by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg yesterday.

Located in Tanjung Kidurong, Bintulu, the plant has the capacity to produce 1.75 million tonnes of methanol per year, making it one of the largest methanol production facilities in the Asia Pacific, Maybank said in a statement.

The plant is funded through a multi-tranche structure combining Sukuk Wakalah Programme of RM4 billion, syndicated term financing facility of US$380 million (RM1.77 billion), and hedging facilities.

Maybank Investment Bank Berhad served as the joint principal advisor, joint lead arranger, and joint lead manager in the Sukuk Wakalah, and the mandated lead arranger and bookrunner for the syndicated financing.

Maybank is facilitating Sarawak Petchem in managing foreign currency exposure and financing rate risks through those various hedging facilities, in addition to providing bank guarantee to support operations.

“By inaugurating the plant today (yesterday) on Sarawak Day, it highlights this project as a milestone in the state’s industrial development,” said Maybank Global Banking Group chief executive officer Datuk John Chong.

“This plant will be a catalyst to extend the oil and gas downstream value chain and transform Sarawak into a petrochemical hub in the region. In turn, this will create more job opportunities for East Malaysians and attract diverse foreign direct investments, boosting the state’s economy and contributing to future prosperity.”

He said Maybank’s financing offers Sarawak Petchem the flexibility and capability to hedge and optimise working capital.

“By offering tailored financial solutions, we enable the company to manage cash flow efficiently and mitigate risks associated with market volatility,” he said, adding Maybank is committed to supporting the success of the company.