3rd Oct 2014 06:39
LONDON (Alliance News) - Graphene NanoChem PLC Friday said its Scomi Platinum joint venture company has been awarded a government-backed debt guarantee.
The Malaysia Green Technology Award will provide guarantees worth up to GBP9.4 million and have been awarded by the Malaysian government for the construction of its performance chemicals facility that uses its Plat Drill Series.
The Plat Drill Series is an environmentally friendly drilling-fluids solution.
The performance chemicals facility, in Port Klang, Malaysia, is expected to come on-line in the second quarter of 2016, and has a guaranteed offtake of 135,000 tonnes of the Plat Drill solutions over a period of five years from Scomi Oiltools, the partner in the joint venture, with an option to renew for an additional five years.
The government guarantees cover up to 60% of a debt financing package for the construction of the chemicals facility and the government will also subsidise 2% of the total interest charged by the financial institutions who provide the finance package.
"We are delighted by the award from the Malaysian government, further validating our innovative technology platform," said Chief Executive Jespal Deol.
Graphene NanoChem shares were quoted 46.94 pence per share at the close of trading Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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