China Fishery secures new $828 million refinancing facility

China Fishery Group, a Singapore Exchange mainboard-listed industrial fishing company, said on Monday it has secured new credit of US$650 million (S$828 million).

The term and revolving credit facility was secured from a bank consortium made up of China CITIC Bank International, Rabobank International in Hong Kong, DBS Bank (Hong Kong), Standard Chartered Bank (Hong Kong) and HSBC, said China Fishery in a statement.

The company will use part of the money from the facility to redeem US$250 million worth of senior notes issued by Corporacion Pesquera Inca, S.A.C., now a subsidiary of China Fishery Group.

The remaining funds will be used to acquire all issued shares in the capital of Copeinca ASA, to repay or prepay some of China Fishery's existing loans, and to finance the general corporate purposes of the group.

Mr Ng Joo Siang, group managing director of China Fishery said: "We have been able to reduce our average interest expense, effectively extend the maturity of our debt, and gain greater operating flexibility to deliver on our objectives."

The firm also aims to achieve a debt to equity ratio of 75 per cent in the next three years, Mr Ng added.

Separately, the firm announced that it had terminated its long term supply agreements to purchase fishery products from its strategic partners Alatir and Perun.

This would allow the firm to redeploy capital and reduce its borrowings.

In return, China Fishery is entitled to a refund of about US$241.5 million from both firms.

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