Seatrium Financial Services, a subsidiary of offshore and marine player Seatrium is launching $400 million of notes $400 at a fixed annual rate of 2.95% according to a bourse filing on April 20.
The inaugural offering of Series 001 Notes, expected to be issued on April 28 and mature on the same date in 2031, are issued in denominations of $250,000 and are part of the $3 billion multicurrency programme announced earlier by Seatrium.
Seatrium has applied to the Singapore Exchange Securities Trading Limited for permission to deal in, and for a quotation of the notes on the Singapore stock exchange.
Net proceeds from this tranche will be used to: refinancing of existing borrowings; financing of potential acquisition and investment opportunities; capex and opex and other general corporate purposes for Seatrium and its subsidiaries; and provision of internal loans to entities within Seatrium to meet financing needs.
According to Seatrium's FY2025 results briefing held on Feb 26, the company had reduced its cost of debt from 5.7% in FY2023 to 3.4% in FY2025. The notes will presumably further reduce this cost.
CEO Chris Ong says is optimising its balance sheet to ensuring the right debt structure to support long-term value creation, while CFO Stephen Lu adds that the company is broadening funding sources and leveraging an improved credit profile to secure favourable refinancing outcomes, at the results briefing.
The company's gross debt decreased 5% year-on-year to $2.5 billion as at end-December 2025 and has set targets of achieving $300 million in synergies and cost savings and $200 million in procurement savings after it was established from the merger of Sembcorp Marine and Keppel Offshore and Marine.
DBS Bank and Stanchart are the joint global coordinators, lead managers and bookrunners in relation to this issuance, with HSBC appointed as the joint lead manager and bookrunner as well.
Shares in Seatrium remain flat at $2.35 as at around 11.42 am on April 21.
