China Fishery Group gets $828m in new credit
CHINA Fishery Group, a Singapore Exchange mainboard-listed industrial fishing company, said yesterday it has secured new credit of US$650 million (S$828 million).
The investors are a banking consortium comprising China CITIC Bank International, Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (also known as Rabobank International), Hong Kong Branch, DBS Bank (Hong Kong), Standard Chartered Bank (Hong Kong) and The Hongkong and Shanghai Banking Corporation.
Proceeds will be used to redeem US$250 million worth of senior notes issued by Corporacion Pesquera Inca, S.A.C. due in 2017; the acquisition of Copeinca ASA by CFG Investment S.A.C.; and the repayment or prepayment of the existing facilities.
The new credit provides the group with the opportunity to focus on consolidation and increasing the operational efficiency and effectiveness of its expanded operations, China Fishery said.
Group managing director Ng Joo Siang said: "The successful completion of our refinancing marks an important step in the enhancement of the capital structure of China Fishery. We have been able to reduce our average interest expense, effectively extend the maturity of our debt, and gain greater operating flexibility to deliver on our objectives.
"Our target is to achieve a debt-to-equity ratio of 75 per cent in the next three years."
The group has also decided not to renew one Long Term Supply Agreement (LSA) and to terminate the three remaining LSAs with Alatir Ltd and Perun Ltd.
China Fishery is one of the world's leading producers of fishmeal and fish oil through its processing plants located strategically along Peru's coastal areas.
THE BUSINESS TIMES