Topaz secures USD 42m SCB financing

Dubai, 20th Nov 2009: Topaz Energy and Marine today announced that it had raised USD 42 million from Standard Chartered Bank, Dubai in support of its fleet expansion plans, taking its total financing raised in 2009 to USD 150m.

Topaz has contracted over USD 150 million in bank finance in 2009 and the lion’s share of the funds have been deployed to support its fleet expansion and modernization program. Although finance available for the shipping sector as a whole is scarce, the OSV space that Topaz occupies is a relative bright spot for banks.

The profile of the banks financing Topaz is diverse and covers leading, regional commercial and Islamic banks, specialized international shipping banks and global institutions.

A leader in the offshore support vessel market, Topaz operates more than 100 modern and high-spec vessels with diverse capabilities such as anchor handling tug supply vessels, platform supply vessels, flotels, ice breakers, crew boats, cable layers, survey vessels and specialized barges.

Topaz employs a prudent vessel acquisition strategy that restricts any speculative buying other than in technological or geographical niches. This model has proven very successful and paired with the relatively low counterparty risk related to Topaz’s blue-chip client base, banks have responded positively.

Topaz CFO, Pramod Balakrishnan commented on Topaz’s success in securing financing, “Topaz has a strong balance sheet and comfortably meets its bank covenants which makes financing us a compelling case for the banks. Our overall fleet exposure is weighted towards medium and long-term contracts which helps counterbalance any spot market volatility, providing another level of comfort for the banks. The long visibility and consistent cash flows generated enable our bankers to sleep soundly.”

Russell Beardmore, Director Structured Finance of SCB, commented: “We are delighted to have worked with Topaz to put this loan facility into place. The bank established the Shipping Finance division in the Middle East in 2008 specifically to provide specialist financing to its relationship clients in the region. This facility is a clear demonstration of us leveraging on our strengths, network and experience to support the sustainable, long-term growth of the Gulf economy.”

Setting the stage for 2010, Topaz has stated its strategic intent to aggressively pursue growth through acquisitions into geographies of strategic importance to the global hydrocarbon markets. Depressed asset valuations and motivated sellers are likely to provide attractive opportunities for Topaz. The OSV-market globally is characterized by smaller operators and in the wake of the global financial crisis, a certain degree of consolidation is expected.

About Topaz Energy and Marine
Topaz Energy and Marine is today one of the world’s leading marine services and oil & gas fabrication companies, with over 35 years of experience in the Middle East. Topaz is a wholly owned subsidiary of Renaissance Services SAOG, a publicly traded company on the Muscat Securities Market. Operating throughout the Middle East and the Caspian, with vessel operations in North Africa and S.E. Asia, Topaz employs over 6,000 people. With its operational headquarters in Dubai, UAE, Topaz operates under two primary business divisions – Topaz Marine and Topaz Engineering. Topaz Marine; the offshore support vessels division comprises Nico Middle East, Doha Marine Services, Topaz Marine Saudi Arabia, BUE Caspian, BUE Kazakhstan & BUE Turkmenistan. Topaz Engineering comprises Adyard (Abu Dhabi) and Nico International.

Topaz Energy and Marine