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New terms for Titan

01 July 2005

The Titan Chemicals facility, although completed in as little as four months, was no simple refinancing. The structure had to be both flexible and help position Titan for its IPO in June. By William Rathvon and Deepa Pasumarty, Standard Chartered Bank.

Read more: [limited recourse]

Against the backdrop of an improving petrochemicals market, Titan Chemicals – the largest integrated olefins and polyolefins producer in Malaysia – successfully closed a $700 million term loan refinancing in early January 2005.

The deal was designed to allow Titan to better match amortization schedules to cashflows and to cater to market capex plans. The overall goal of the refinancing was to get Titan's capital structure onto a strong footing to allow for a successful IPO. A successful IPO would strengthen Titan's balance sheet, result in a long-term sustainable debt level for the company and thus make the company less susceptible to the cyclicality of the petrochemicals market.

Titan's history

When its first polypropylene plant was commissioned in 1991, Titan was the first polyolefins producer in Malaysia. With its current production capacity at over 2 million tonnes per annum of petrochemical products, Titan is now the largest integrated olefins and...


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