The five-year ?syndicated transferable loan facility? is to ?be used for general corporate purposes?
Leading tanker owner MISC Berhad has secured a $1 billion credit facility, despite current turmoil in the world's financial and credit markets.
Malaysia's largest shipping company said in a stock exchange announcement Wednesday that the five-year ?syndicated transferable loan facility? is to ?be used for general corporate purposes?, reports said.
?The transaction is not subject to the approval of shareholders,? said MISC without going into further details.
The facility is to be provided by a syndicate of banks including the Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Mizuho Corporate Bank Ltd, OCBC (Malaysia) and the Sumitomo Mitsui Banking Corp.
MISC Capital, a wholly-owned subsidiary of MISC Berhad, is the recipient of the loan although the entire facility if guaranteed by the parent, reports said.
?There has been no word from them (MISC) about a large scale fleet expansion,? a Singapore-based ship broker told Wednesday.
?Prices of everything from newbuildings to even entire companies, look set to dip drastically on the back of a recession. A billion dollars would come in handy for purchases then,? he added.