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| Onsys Energy to buy 4 more ships by next March |
| Written by Loong Tse Min | |||
| Tuesday, 18 August 2009 11:33 | |||
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The Johor-based company yesterday signed with Asian Finance Bank Bhd (AFB) a financing deal worth RM50 million for the purchase of two 7,000 deadweight tonne (dwt) marine fuel oil tankers — Onsys Aries and Onsys Leo. The deal is the first marine vessel financing deal for AFB, the Kuala Lumpur-based Islamic bank. The RM50 million term loan provided 50% of the financing for the two product tankers. The four vessels it plans to purchase will be 9,000 dwt chemical tankers worth about US$23 million (RM81.7 million) each, which Onsys Energy has ordered from the Titan Quanzhou Shipyard, China, which also built Onsys Aries and Onsys Leo. Business is expected to be good for Onsys with the tightening of the enforcement of regulations since Aug1, preventing foreign-flagged ships to operate in Malaysian waters for “bunkering” services if Malaysian vessels are available. Bunker oil is any type of fuel oil used aboard ships.  Both new product tankers were Malaysian-flagged ships that Onsys planned to operate in local waters for bunkering purposes, Onsys Energy managing director Jaafar Mohamad told reporters at the signing ceremony of the financing deal here yesterday. The Aries and the Leo will add on to Onsys Energy’s current fleet of five vessels, of which three are Singapore-flagged that it operates to ship cargo internationally, one is Panama-flagged and one is Malaysian-flagged. Currently, Onsys Energy has offices in Singapore and provides bunkering services at the Port of Tanjung Pelepas, Pasir Gudang and Port of Singapore. The company has also supplied fuel to clients in overseas locations through third party partners. For its four new chemical tanker vessels, the first of which will be delivered in November this year, Onsys Energy is also considering financing from AFB. AFB chief executive officer Datuk Mohamed Azahari Kamil told reporters that the bank saw the company as having a sustainable business that would grow. “We look for clients for the long term that can grow,” he said. AFB’s current portfolio of funding to corporates stands at RM620 million, and the bank planned to open offices in Kuching, Sarawak and in Brunei, Azahari said. The bank has said it is targeting to boost its corporate funding portfolio to RM1 billion by year-end. This article appeared in The Edge Financial Daily, August 18, 2009.
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