Oryx Stainless: Innovative Borrowing Base Facility successfully closed in the amount of 660 million Thai Baht

Bangpakong/Thailand (ots) - Oryx Stainless (Thailand) Co., Ltd., under the umbrella of Oryx Stainless Holding B.V., has successfully finalised a 660 million Thai Baht revolving Borrowing Base credit facility to support the growth strategy of Oryx Stainless Group in Asia. The facility is structured as a secured Borrowing Base and is amongst the very first solutions of its innovative and flexible kind in the Thai banking market.

The Borrowing Base lending concept, under which lenders make available credit facilities based on the value of underlying assets, is an ideal match for the working capital financing of companies performing in volatile, cyclical or seasonal business contexts. Oryx Stainless intends to use the facility primarily to fund its working capital requirements for inventory purchases which vary depending on developments in the global stainless steel markets as well as fluctuations in commodity prices of underlying components such as Nickel. The Borrowing Base ensures that sufficient funding is available at any point in time, in line with business developments, to the benefit of both the company and the lenders.

Oryx Stainless Thailand mandated HSBC Thailand as lead arranger to structure and arrange the Revolving Credit Facility transaction. Both HSBC Thailand and KASIKORNBANK PCL act as Lenders in this club deal. The Facility Agent function is covered by HSBC Singapore and the legal documentation was prepared by Norton Rose Fulbright Thailand.

"Since nearly a decade, Oryx Stainless is active in the growing market of South-East Asia and implementing a local Borrowing Base was our vision since the very beginning. Thus, the recent closing of the Thai financing facility is a further milestone in the successful development of our Thai operation and underlines Oryx Stainless' good positioning not only in the European but also in the Thai capital market.", says Roland Mauss, CFO of Oryx Stainless Group.

Marthijn Smit, CEO of Oryx Stainless Thailand underlines that "Oryx Stainless, being always committed to the Kingdom of Thailand and its people, is very pleased not only to operate but also to be innovatively financed in Thailand." Sirichai Tempoomsuk, CFO of Oryx Stainless Thailand adds: "The Revolving Borrowing Base Credit Facility breathing with the warehouse inventory is the most intelligent form of financing that matches our business model, and we are supported by our long-term strong and renowned banks as partners to realize it".

Kelvin Tan, CEO of HSBC Thailand, concludes "We are proud to be supporting the sustainable growth of Oryx Stainless' business through facilitating this flexible and innovative finance solution - one of the first of its kind to be offered in Thailand."

Panya Kongkapaisal, First Senior Vice President, KASIKORNBANK explains, "We are honored to collaborate in this syndication to support successful and sustainable business growth of Oryx Stainless in Thailand and strengthen our long-term strategic partnership with the group."

But, Oryx Stainless (Thailand) Co., Ltd. is not only successful in economic and financing terms. The sustainable business model of zero waste stainless steel scrap processing also makes Oryx Stainless Thailand the benchmark and lighthouse for a circular economy in South East-Asia. During 2019, by the recycling of stainless steel scrap more than 300,000 tons of carbon dioxide were avoided in protecting society against further climate change.

Notes for the editorial staff:

About ORYX

The Oryx Stainless Group, founded in 1990, is one of the world's leading organisations for raw materials used in the production of high-quality stainless steels. The Group focuses its business activities on the handling and processing of stainless-steel scrap into Oryx Stainless Blends. These secondary raw material blends - individually adapted for the respective stainless-steel producers - replace above all primary raw materials such as ferronickel, ferrochromium and ferromolybdenum. Oryx Stainless (Thailand) Co., Ltd. is the Asian operation of Oryx Stainless Group.

HSBC Thailand

HSBC was established as the first commercial bank in Thailand in 1888. HSBC provides a full range of financial services including global, commercial and institutional banking, global markets, securities services, trade and supply chain, liquidity and cash management services to corporate customers.

HSBC Holdings plc

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,923bn at 30 June 2020, HSBC is one of the world's largest banking and financial services organisations.

About KASIKORNBANK

The KASIKORNBANK Public Company Limited was established on June 8, 1945. Throughout the past 70 years, the Bank has always strived to develop its organization and offer financial product initiatives plus excellent service delivery to match the slogan, "Towards Service Excellence" and "Customer Centricity" concept. This led to the consolidation of KASIKORNBANK and subsidiaries (K Companies) and "K KASIKORNTHAI" symbol was adopted to guarantee quality and standards.

KASIKORNBANK aims to be a most innovative, dynamic, and proactive customer-centric financial institution that creates sustainability for all stakeholders and aims to harmoniously combine technology and human resources to sustainably create world-class-quality financial services, so as to achieve optimal benefits for all stakeholders.

Contact:

Media enquiries ORYX: Marthijn Smit Phone +66 (0) 38 571 960 smit@oryx.com http://www.oryx.com About HSBC

Media enquiries HSBC Holdings plc: Varanandha SutthapreedaPhone +66 (0) 2614 4609 varanandhasutthapreeda@hsbc.co.th

Media enquiries KASIKORNBANK: Pakin O-sotkraphun Phone +66 (0) 2-562-7323 pakin.o@kasikornbank.com

Additional content: http://presseportal.de/pm/79929/4676665 OTS: Oryx Stainless AG

Original-Content von: Oryx Stainless AG, übermittelt durch news aktuell