Singaporean offshore marine company Otto Marine, which specialises in the building and operation of complex offshore vessels, has told the Singapore bourse that its subsidiary, Otto Marine Services, had raised US$49 million through the issue of Medium Term Notes.
The three-year unsecured notes at a fixed rate of 4.85 percent were issued under the group's MutliCurrency Medium Term Note Programmes established last month.
The net proceeds from the issuance will be used to refinance borrowings from the group, to finance the capital requirement of the group and to finance the general working capital of the group.
"This is our debut in the bond market," the group's President and group Chief Executive Officer Lee Kok Wah said.
"It has allowed the group to tap into the current bond market whilst interest rates are still low and attractive. The majority of the [US$49 million] raised will be used to refinance the bank loans which have a higher interest rate and to finance the capital expenditure of the chartering fleet, which would have required bank loans."
Sammy Lee
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