A strategic partner of Vallianz Holdings has stepped up to reassure investors that the offshore vessel owner will be able to fully redeem debt maturing later this month.
Rawabi Holding will help the Singaporean company pay off notes worth SGD 60m ($43.3m) due on 22 November, issued under the company’s multicurrency programme in 2014.
After the redemption of the notes, Vallianz said it would not have any outstanding debt.
Ling Yong Wah, chief executive of Vallianz, said: “In light of the present difficult circumstances within offshore oil and gas industry, we are aware of market concerns regarding the ability of companies operating in the offshore industry to fulfil their debt obligations and carry on business operations.
“We believe the assurance that Vallianz is providing to our bondholders today is important to help assuage any potential concerns about the group’s business sustainability.”
Nearly 30 ships controlled by Vallianz carry the name “Rawabi”, in respect of its long-term cooperation with the Saudi company.
Abdulaziz AlTurki, chairman of Rawabi, said: “We are pleased to give Vallianz our full backing.
“Rawabi is not only a shareholder of Vallianz but also a strategic business partner who has contributed significantly to the group’s expansion in the Middle East oil and gas industry.”
