zoom A USD 1.25 billion senior financing agreement has been signed to fund the Pengerang Terminals (Two) Sdn Bhd (PT2SB) oil storage terminal in Pengerang, Malaysian state of Johor, Vopak informed. PT2SB, a joint venture between Petroliam Nasional Berhad (PETRONAS), Dialog Group Berhad (Dialog), the state of Johor (SSI) and Royal Vopak inked the deal with a banking syndicate of nine international banks on December 12. The syndicate consists of AmInvestment Bank, DBS, ING Bank, Maybank, MUFG, Natixis, OCBC, SMBC, and UOB.The construction of PT2SB started in early 2015 and is scheduled for commissioning in various phases during the first half of 2019.This industrial terminal will predominantly serve the PETRONAS Refinery and Petrochemicals Integrated Development project (RAPID).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 twelve berths. The draft of 24 meters can also accommodate very large crude carriers (VLCCs).The project costs are estimated around USD 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 the abovementioned banking syndicate, as explained by Vopak.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.“We are proud that we have been able to secure the financing for this flagship project and we are very pleased with the commitment demonstrated by nine relationship banks participating in the financing of this project,” Jack de Kreij, Vice-Chairman of the Executive Board and CFO of Vopak, commented.