Singapore-based ChemOne Holdings Pte Ltd is seeking more than US$2.7 billion (approximately RM11.42 billion) through a syndicated loan to support the development of a major chemical processing facility in Johor, Malaysia, according to sources familiar with the matter.
In response to queries from Bloomberg News, the petrochemicals group confirmed that the project financing carries a weighted average tenor of around 7.5 years. The proposed loan features an interest margin of approximately 150 to 180 basis points above the benchmark Secured Overnight Financing Rate. Mizuho Securities Co Ltd is among the financial institutions acting as arrangers for the deal.
This syndicated loan forms part of a broader US$3.5 billion funding package, for which ChemOne finalised financing terms in December. The company has already secured commitments for approximately 90 percent of the total loan amount and is in advanced negotiations to conclude the remaining tranche.
A consortium of global export credit agencies and development financial institutions, including the Export-Import Bank of the United States and Italy’s SACE, has confirmed its participation in the transaction. ChemOne expects to formally sign the agreement in the third quarter of the year.
The financing will support the construction of the Pengerang Energy Complex in southern Johor, a strategic development within a growing oil, gas and petrochemical hub near key international shipping routes. The site’s deep-water access will enable it to accommodate some of the largest crude carriers globally.
Designed as a low-carbon facility, the complex is projected to deliver 5.6 million metric tonnes annually of aromatic and energy products. Construction is scheduled to commence in mid-2025, with full operational streaming anticipated by the end of 2028.
ChemOne added that the syndicated loan is supported by investment-grade credit insurance, covering up to 95 percent of both interest and principal obligations.
-Bloomberg
