Sembmarine's Brazil unit enters into revolving credit facility for up to US$500m

SEMBCORP Marine (Sembmarine) on Friday said its Brazil subsidiary Estaleiro Jurong Aracruz (EJA) has entered into a revolving facility agreement for up to US$500 million. 

Standard Chartered Bank (Singapore) is acting as original lender, arranger and agent for the facility agreement, which is guaranteed by Sembmarine.

Under the deal, a "change of control" includes an event where Sembcorp Industries ceases to be the majority shareholder of Sembmarine. If this occurs, the parties shall enter into negotiations to review the terms of the facility agreement, Sembmarine said. 

As at June 5, the loan and trade facilities of the group that may be affected by this "change of control" amounts to about S$6.03 billion. 

On Thursday, Sembmarine said a court in Brazil has accepted charges filed against two men formerly linked to EJA.

Both Sembmarine and Sembcorp requested trading halts on Thursday morning, pending the release of an announcement.