BANGPAKONG, Thailand, October 28, 2022 /PRNewswire/ — Oryx Stainless Steel (Thailand) Co., Ltd., under the umbrella of Oryx Stainless Holding BV, has successfully entered into an amendment and restatement agreement to increase and extend the borrowing base revolving credit facility of 340 million Thai baht of 660 million Thai baht at 1 billion Thai baht to support Oryx Stainless Group’s growth strategy by Asia. The duration of the extension is 3 years.
Oryx Stainless has retained HSBC Thailand as lead arranger to structure and arrange the revolving credit facility transaction. HSBC Thailand and KASIKORNBANK PCL both acted as lenders under this club deal. HSBC Singapore serves as the facilitating agent and the legal documentation has been prepared by Norton Rose Fulbright Thailand.
The new facility is significantly larger than previous Borrowing Base financing lines from Oryx Stainless and also reflects the successful experience and growing interest of Thai companies in using Borrowing Base financing as a working capital management tool. . Oryx Stainless’ Secured Base Loan Facility remains one of the very first innovative and flexible solutions of its kind in the Thai banking market.
“For us, the increased and extended base borrowing facility is the ideal solution to cover the financing needs of the ever-increasing volumes and the volatility of commodity prices. Our past and future growth strategy is strongly supported by our longstanding Thai banking partners, showing their and our commitment to Thailand as the location of our sustainable circular economy business model,” says Sirichai Tempoomsuk, CFO of Oryx Stainless Thailand.
“Debt base structures are an effective way for businesses to implement scalable asset finance programs that dynamically adapt to actual working capital needs. HSBC Thailand is proud to work with companies such as Oryx to support the circular economy and reduce reliance on primary raw materials.We are also pleased to partner with Oryx, using our international connectivity to help Oryx expand its business presence across Asia“, says SP Mohanty, Country Head of International Banking Subsidiaries, HSBC Thailand.
Panya Kongkapaisal, Senior Senior Vice President of KASIKORNBANK, explains, “We are delighted to be part of the thriving business of Oryx Stainless by expanding our collaboration in this unique financing solution and providing continued support as a partner to long term.”
Also in Europethe Oryx Stainless Group has increased its financial flexibility with the refinancing of its syndicated loan up to 125 million euros. The transaction was concluded with a stable and unchanged consortium of six banks led by HSBC Germany and spans a period of three years, with an option to extend for a further year. Included in the documentation is an option to increase the loan amount up to 145 million euros.
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About ORYX INOX
Founded in 1990, the Oryx Stainless Group, together with its parent company Oryx Stainless Holding BV, is one of the world’s leading raw materials organizations in the production of high quality stainless steels. The company’s business activities focus on the handling and processing of stainless steel scrap into Oryx stainless steel blends. These mixtures of raw materials from recycling, refined individually for each stainless steel producer, primarily replace primary raw materials. Oryx stainless steel (Thailand) Co., Ltd. is part of the Oryx Stainless group and has been a market leader in Asia since 2014.
In fiscal year 2021, Oryx Stainless Thailand, as one of the leading circular economy companies in Asiaensured a saving of more than 360,000 tonnes of CO2 with its supplies of recycled raw materials, thus contributing significantly to the protection against climate change.*
*Calculation according to a scientific study by Fraunhofer IMW.
About Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 63 countries and territories in its geographic regions: Europe, Asia, North America, Latin Americaand Middle East and North Africa. With assets of $2.985 billion at June 30, 2022HSBC is one of the largest banking and financial services organizations in the world.
KASIKORNBANK Public Company Limited was established on June 8, 1945. Over the past 70 years, the Bank has always strived to develop its organization and offer financial product initiatives and excellent service delivery to match the slogan “Towards Service Excellence”. and the “Customer Centricity” concept. This led to the consolidation of KASIKORNBANK and its subsidiaries (K companies) and the symbol “K KASIKORNTHAI” was adopted to guarantee quality and standards.
KASIKORNBANK aims to be the most innovative, dynamic and proactive customer-centric financial institution that creates sustainability for all stakeholders and aims to harmoniously combine technology and human resources to sustainably create world-class quality financial services, in order to achieve optimal benefits for all stakeholders.
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SOURCE Oryx Stainless AG