Singapore-listed Vallianz said the notes will be funded by internally-generated funds as well as advances from Saudi Arabia’s Rawabi Holding Company, a controlling shareholder and strategic business partner of the company.
“We would like to assure our bondholders that Vallianz will be able to fully redeem the notes that are due to mature this month,” said Ling Yong Wah, ceo of Vallianz.
The fixed rate notes were issued in May 2014 under the company’s multicurrency debt issuance programme. Upon redemption of the notes, Vallianz will not have any outstanding notes under the multicurrency debt issuance programme.
“In light of the present difficult circumstances within offshore oil and gas industry, we are aware of market concerns regarding the ability of companies operating in the offshore industry to fulfill their debt obligations and carry on business operations,” Ling said.
Sheikh Abdulaziz AlTurki, group chairman of Rawabi, commented: “Rawabi is not only a shareholder of Vallianz but also a strategic business partner who has contributed significantly to the group’s expansion in the Middle East oil and gas industry.
“This has enabled the group to become one of the largest offshore support vessel providers in the Middle East,” he said.
The backing by Rawabi for Vallianz is crucial at a time when Swiber, which is the largest shareholder with 25.2% stake in Vallianz, has collapse. Rawabi is the second largest shareholder of Vallianz with 18.7% stake.
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