Pengerang Terminal Phase II

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The Pengerang Terminal Phase Two project involves the development of a dedicated 1.65 million m3 onshore handling and distribution terminal for the handling of petroleum and petrochemical feedstock and products for and from the Pengerang Integrated Complex (“PIC”) at Pengerang, Johor, Malaysia ("Project"). The construction of PT2SB started in early 2015 and is scheduled for commissioning in various phases during the first half of 2019. The project is underpinned by a 25 years Anchor Terminal Usage Agreement with PRPC Refinery and Cracker Sdn Bhd (“PRPC RC”), a wholly owned subsidiary of PETRONAS. PT2SB, a joint venture between Petroliam Nasional Berhad (PETRONAS) (40%), Dialog Group Berhad (Dialog) (25%), The state of Johor (SSI) (10%) and Royal Vopak (25%). This industrial terminal will predominantly serve the world scale PETRONAS Refinery and Petrochemicals Integrated Development project (RAPID) as its main customer. PT2SB will have an initial storage capacity of 1.65 million cubic meters for crude, refined products, petrochemical products and Liquefied Petroleum Gas (LPG). The marine infrastructure includes 12 berths.The draft of 24 meters can also accommodate very large crude carriers. The project costs are estimated around $1.6 billion, of which approximately 20% will be funded with equity contributions by the shareholders and approximately 80% is provided in the form of project financing through banking syndicate. The syndicate of banks consists of AmInvestment Bank ($150 million), DBS ($200 million), ING Bank ($100 million), Maybank ($100 million), MUFG ($100 million), Natixis ($100 million), OCBC ($200 million), SMBC ($200 million), and UOB ($100 million). These banks all acted as Mandated Lead Arrangers. The remaining cost will be covered by equity contribution according to respective percentage of ownership. Total equity amounts to $293 million. The financing facilities will have a final maturity of 15 years with a repayment schedule which starts after commissioning. The financing is initially based on variable interest rates and PT2SB will enter into financial hedge instruments to materially reduce the potential interest exposure. Financial close occurred on December 11, 2017. https://www.vopak.com/system/files/press/2017/12/828186.pdf