The Oryx Stainless (Thailand) Co. Ltd. business unit of Netherlands-based stainless scrap trading firm Oryx Stainless Holding B.V. says it has secured an increased line of credit of 1 billion Thai baht ($26.2 million) “to support growing business demand.”
The firm says its new “amendment and restatement agreement” has increased and extended its revolving borrowing base credit facility by 340 million Thai baht ($8.9 million) from 660 million ($17.3 million) Thai baht to 1 billion Thai baht. The extension adds three years to the arrangement.
HSBC Thailand is the lead arranger of the revolving credit facility, Oryx says, while Thailand-based Kasikornbank PCL also is involved. HSBC Singapore is serving as a facility agent and legal documentation was prepared by the Thailand office of London-based Norton Rose Fulbright.
The extension builds on an agreement reached in August between Oryx and business units of London-based global banking firm HSBC.
“For us the increased and prolonged borrowing base facility is the perfect match to cover the financing needs from steadily rising volumes and volatile commodity prices,” says Sirichai Tempoomsuk, chief financial officer of Oryx Stainless Thailand. “Our past and future growth strategy is strongly supported by our long-standing Thai banking partners, showing their and our commitment to Thailand as the location of our sustainable circular economy business model.”
Oryx says the new facility is “substantially larger” than its previous borrowing base funding lines and “reflects the successful experience and growing interest from Thai corporates in using borrowing base finance as a tool for working capital management.”
“Borrowing base structures are an effective way for companies to set up scalable asset financing programs that dynamically adjusts to the actual working capital needs,” says SP Mohanty, country head of international subsidiary banking for HSBC Thailand. “We are also happy to partner with Oryx, using our international connectivity to help Oryx expand [its] commercial presence across Asia.”
Panya Kongkapaisal, first senior vice president with Kasikornbank, says, “We are excited to be part of Oryx Stainless’ thriving business by extending our collaboration in this unique finance solution and providing continued support as their long-term partner.”
Additionally, in Europe Oryx Stainless Group says it has increased its financial flexibility with the refinance of its syndicated credit facility in the amount of 125 million euros ($124.4 million). That agreement was reached with a consortium of six banks led by HSBC Germany and runs for a period of three years, Oryx says. A one-year extension and a facility raise to 145 million euros ($144.3 million) also are part of that agreement.
Oryx Stainless Group is a global provider of raw materials used in stainless steel production. The company focuses on the handling and processing of stainless steel scrap into what it calls Oryx Stainless Blends, prepared specifically for individual stainless steel mills. The Oryx Stainless (Thailand) Co. Ltd. business unit was created in 2014.
Latest from Recycling Today
- Alumetal of Poland issues EPD
- Bolder Industries receives grant for European project
- Regenx says US facility back online
- Cliffs has money-losing Q3
- BIR Autumn 2024: Supply challenges poised to grow
- Befesa reports double-digit adjusted EBITDA growth in Q3
- Companies partner to standardize build of chemical recycling plants
- Solarcycle to add recycling plant to Georgia campus