OMS Group lands RM4.4bil funding for fleet, digital infra expansion
KUALA LUMPUR: Subsea telecommunications infrastructure provider OMS Group has secured US$1.03 billion (about RM4.4 billion) financing to fund its expansion, including the acquisition of four new fibre-optic cable-laying vessels.
KUALA LUMPUR: Subsea telecommunications infrastructure company OMS Group has successfully secured US$1.03 billion (approximately RM4.4 billion) in financing to support its expansion, which includes the acquisition of four new fibre-optic cable-laying vessels. The funding consists of US$911.5 million in corporate and trade facilities, along with export credit agency-backed term loan facilities and additional US$120 million in trade facilities awaiting financial closure.
The export credit agency, backed by Atradius Dutch State Business NV and Export Finance Norway, will aid OMS Group's investment in modern, fuel-efficient vessels scheduled for delivery in 2027 and 2028. These new vessels are anticipated to bolster OMS Group's cable-laying capacity as the demand for subsea connectivity surges due to the growth in cloud computing, artificial intelligence, and data centre development.
The financing attracted participation from both regional and international banks, with both corporate and export credit agency-backed facilities being oversubscribed by over two times, indicating strong lender interest in OMS Group's expansion plans. OMS Group's Chief Executive Officer, Ronnie Lim, expressed that the financing will aid the company's long-term growth strategy and investment in its comprehensive digital infrastructure capabilities.
With the acquisition of these four newbuild vessels, OMS Group aims to enhance its cable-laying capacity and assist customers in constructing networks that support global digital growth. HSBC Singapore and Standard Chartered Bank served as joint global coordinators, bookrunners, and export credit agency coordinators. KKR Capital Markets acted as the corporate adviser.
HSBC's Head of Export Finance for Asia, Edward Hui, stated that the financing will support OMS Group's fleet expansion and investment in its digital infrastructure business, enabling it to meet evolving customer demands. Standard Chartered's Global Head of Transportation Finance, Abhishek Pandey, highlighted that the transaction will support the group's long-term investment plans amid the persistent expansion of global digital infrastructure.
The financing was tailored to meet the specific needs of the subsea cable industry and secured participation from a diverse range of lenders.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
