Singapore-based petrochemicals, green energy and natural resources conglomerate ChemOne Group, developer of the Pengerang Energy Complex (PEC), has signed a binding definitive facility agreement with MUFG Bank (Malaysia), part of the Mitsubishi UFJ Financial Group.
A key part of the PEC project finance package is a US$300 million non-recourse receivables purchase facility to discount invoices of finished product sales to offtakers. The signed facility agreement with MUFG confirms its participation for US$200 million under this facility. Furthermore, there is a US$100 million accordion option available under this facility.
“This facility puts in place robust banking arrangements to enable significant improvement in working capital cycle and cash flow management,” says Alwyn Bowden, PEC’s chief executive officer. “This partnership with MUFG is important as we rapidly move towards the project’s financial close.”