Company Briefs: Yongnam Holdings

Yongnam Holdings

Mainboard-listed Yongnam Holdings has secured new contracts in Australia and Singapore worth $73.4 million, the steel construction and civil engineering firm announced in a Singapore Exchange filing yesterday.

Yongnam said the contracts are expected to have a positive impact on its financial performance for the year ending Dec 31.

The firm is entering Australia for the first time with several specialist civil engineering contracts, supplying steel struts and strutting components for infrastructural developments in Melbourne. The signing of the last of these contracts, worth $47 million, is expected to be completed next month.

In Singapore, Yongnam has two contracts from repeat customers for the supply, fabrication, delivery and erection of structural steelwork. The first, awarded by China Construction (South Pacific) Development Co, is for an integrated community and sports facility in Sembawang and is expected to be completed by the first quarter of 2020. The second, awarded by PBT Engineering, is for 14 sets of fixed gangways in Changi Airport Terminal 1 and is expected to be completed in 2021.

Golden Energy and Resources

Indonesian coal producer Golden Energy and Resources (Gear) has secured term loan facilities of up to A$150 million (S$145 million) from lender Credit Suisse, mainly to finance its acquisition of shares in Stanmore Coal, said the firm on Monday.

The term loan facilities are secured by a share pledge in favour of PT Bank CIMB Niaga Tbk over certain shares Gear owns in PT Golden Energy Mines Tbk (Gems), and a guarantee and indemnity agreement granted by PT Hutan Rindang Banua in favour of Credit Suisse.

The pledged Gems shares are also being used to secure Gear's US$150 million (S$205 million) senior secured notes due in 2023 at a coupon of 9 per cent per annum. These were issued in February.

Last month, Gear had announced its bid for a 19.9 per cent stake in coking coal-focused Stanmore for A$47.6 million in cash, with plans to eventually transfer that interest to a 51 per cent joint venture that is offering up to A$201.13 million for all the remaining shares of Stanmore.

A version of this article appeared in the print edition of The Straits Times on December 27, 2018, with the headline 'Company Briefs'. Print Edition | Subscribe