Subsea cable installation and repair company, OMS Group, has secured nearly $300 million in financing through a syndicated facilities agreement to expand its fleet of cable ships.
This significant funding, facilitated by KKR Capital Markets, includes contributions from renowned financial institutions such as HSBC Bank, Affin Bank Bhd, Affin Hwang Investment Bank Bhd, BDO Capital & Investment Corporation, E-Sun Commercial Bank Ltd, and SinoPac Co Ltd.
“We are pleased to announce that OMS Group has successfully secured RM1.35 billion (US$292.5 million) in loans through a syndicated facilities agreement with a consortium of prominent financial institutions,” the company stated on LinkedIn this week.
The financing is earmarked to enhance OMS Group’s capabilities by expanding its fleet of cable ships, crucial for its operations in the subsea telecommunications sector. Chairman Datuk Lim Soon Foo expressed pride in the partnership with these esteemed institutions, emphasizing its role in reinforcing the company’s industry position and commitment to excellence and innovation.
Established in 1983 and headquartered in Selangor, Malaysia, OMS Group specializes in subsea cable installation and maintenance. The company currently operates six cable-laying and repair vessels, including the CS Cable Vigilance launched in 2022, along with two barges and three tugboats.
The expansion of OMS Group’s fleet comes at a pivotal time when the demand for subsea cables is rising sharply, driven by the need for enhanced connectivity worldwide. In the last two months alone, the world has experienced an increase in submarine cable outages in Pakistan (SMW4 cable), Vietnam (Intra Asia cable, Asia Pacific Gateway, and Asia-Africa-Europe-1 cable), West Africa (ACE, MainOne, SAT-3, and WACS), East Africa (EASSy and Seacom), Yemen (AAE-1), Bangladesh (SEA-ME-WE 5), and the US (Quintillion).
The scarcity of specialized cable ships underscores the strategic importance of this investment, which aims to mitigate delays in projects and expedite repairs in an increasingly interconnected world.
