Oryx Stainless secures increased THB 1bln Innovative Borrowing Base Facility to support growing business demand

BANGPAKONG, Thailand, Oct. 28, 2022 /PRNewswire/ — Oryx Stainless (Thailand) Co., Ltd., under the umbrella of Oryx Stainless Holding B.V., has successfully entered into an amendment and restatement agreement to increase and extend the revolving Borrowing Base credit facility by 340 million Thai Baht from 660 million Thai Baht to 1 billion Thai Baht to support the growth strategy of Oryx Stainless Group in Asia. The tenor of the extension is 3 years.

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

The new facility is substantially larger than Oryx Stainless’s previous Borrowing Base funding lines and also reflects the successful experience and growing interest from Thai corporates in using Borrowing Base finance as a tool for working capital management. Oryx Stainless’s secured Borrowing Base facility remains one of the very first solutions of its innovative and flexible kind in the Thai banking market.

“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. 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,” says Sirichai Tempoomsuk, CFO of Oryx Stainless Thailand.

“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. HSBC Thailand is proud to work with companies such as Oryx in supporting the circular economy and reducing the reliance on primary raw materials. We are also happy to partner with Oryx, using our international connectivity to help Oryx expand their commercial presence across Asia,” says SP Mohanty, Country Head of International Subsidiary Banking, HSBC Thailand.

Panya Kongkapaisal, First Senior Vice President, KASIKORNBANK explains, “We are excited to be part of Oryx Stainless’s thriving business by extending our collaboration in this unique finance solution and providing continued support as their long-term partner.”

Also in Europe, the Oryx Stainless Group increased its financial flexibility with the refinance of its syndicated credit facility in the amount of 125 million Euros. The transaction was agreed with a stable and unchanged consortium of six banks lead by HSBC Germany and runs for a period of three years, with an option to extend for a further year. Included in the documentation is an option to increase the loan amount up to 145 million Euros.

Notes for the editorial staff:

About ORYX STAINLESS

Founded in 1990, the Oryx Stainless Group, with its parent company Oryx Stainless Holding B.V., is one of the world’s leading organisations for raw materials in the production of high quality stainless steels. The focus of the company’s business activities is on the handling and processing of stainless steel scrap into Oryx Stainless Blends. These raw material blends from recycling, individually fine-tuned for each stainless steel producer replace, above all, primary raw materials. Oryx Stainless (Thailand) Co., Ltd. is part of the Oryx Stainless Group and a market leader in the Asian market since 2014.

In the 2021 financial year, Oryx Stainless Thailand, as one of the leading companies of the Circular Economy in Asia, ensured a saving of more than 360,000 tons of CO2 with its supplies of recycled raw materials, so making a significant contribution to climate change protection.*

*Calculation according to a scientific study of Fraunhofer IMW.

About The Hongkong and Shanghai Banking Corporation Limited

The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 63 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,985bn at 30 June 2022, HSBC is one of the largest banking and financial services organisations in the world.

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.

Media enquiries: 

Sirichai Tempoomsuk 

+66 (0) 98 0142 429 

[email protected]

www.oryx.com

Von Nonsrichai 

+66 (0) 2 614 5222 

[email protected]

Pakin O-sotkraphun 

+66 (0) 2-562-7323 

[email protected]

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SOURCE Oryx Stainless AG

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