Vallianz to redeem S$60m bonds due in November

EVEN as the oil and gas sector continues to struggle, offshore support vessel (OSV) provider Vallianz Holdings said on Thursday it intends to redeem in full its S$60 million bonds maturing on Nov 22, 2016.

The redemption of the bonds will be funded by internally generated funds as well as advances from controlling shareholder Rawabi Holding Company of Saudi Arabia, said the company.

Some market players had speculated whether the bonds, issued in May 2014 under Vallianz's multicurrency debt issuance programme, would be redeemed later this month given the current difficult conditions around the sector.

Vallianz CEO Ling Yong Wah assured bondholders that the company would be able to fully redeem the bonds.

"In the light of the present difficult circumstances in the offshore oil and gas industry, we are aware of market concerns regarding the ability of companies operating in the offshore industry to fulfil their debt obligations and carry on business operations. We believe the assurance that Vallianz is providing to our bondholders today is important to help assuage any potential concerns about the group's business sustainability."

Sheikh Abdulaziz AlTurki, group chairman of Rawabi, said: "We are pleased to give Vallianz our full backing. Rawabi is not only a shareholder of Vallianz but also a strategic business partner which has contributed significantly to the group's expansion in the Middle East oil and gas industry. This has enabled the group to become one of the largest offshore support vessel providers in the Middle East."

Vallianz, in response to distressing reports that it had abandoned crew aboard three vessels, last week said it has begun paying workers their wages due.

Vallianz made the statement to Singapore Exchange after maritime news site Splash 247 reported that the crew of the "Swiber Explorer" had been left to fend for themselves off Dubai.

Vallianz is 25.15 per cent owned by beleaguered Swiber Holdings, which went bust in August.