24 Sep 2004

SembCorp Marine And Its Subsidiaries Jurong Shipyard And Sembawang Shipyard Set Up A S$500,000,000 Multicurrency Multi-Issuer Debt Issuance Programme: Launches Initial S$150,000,000 Note Issue

SembCorp Marine Ltd (the “Company”) announced today that the Company has established a S$500,000,000 Multicurrency Multi-Issuer Debt Issuance Programme (the “Programme”) pursuant to which the Company, together with its subsidiaries Jurong Shipyard Pte Ltd and Sembawang Shipyard Pte Ltd (“Issuing Subsidiaries”), may from time to time issue the Notes (as defined below). The obligations of the Issuing Subsidiaries under the Notes will be fully guaranteed by the Company. The Company has appointed DBS Bank Ltd (“DBS”) and Standard Chartered Bank (“SCB”) to act as joint arrangers and dealers of the Programme.

Under the Programme, the Company or any of the Issuing Subsidiaries may from time to time issue notes in series or tranches in Singapore dollars and/or any other currency. The net proceeds arising from the issuance of Notes will be used for the purposes of (a) re-financing the existing borrowings of the Company and its subsidiaries, (b) financing the general corporate or working capital requirements of the Company and its subsidiaries.

In conjunction with the establishment of this Programme, the first series of S$150,000,000 5-year fixed rate notes off the Programme (the “Series 1 Notes”) is expected to be issued on September 27, 2004. The Series 1 Notes bear a fixed rate coupon of 3.00% per annum and will be listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”) and will be cleared through The Central Depository (Pte) Limited (“CDP”). The minimum denomination of the Series 1 Notes shall be S$250,000. DBS and SCB are the Joint Lead Managers and Bookrunners for the Series 1 Notes with ABN Amro as a Co-Manager. The Series 1 Notes have been successfully placed with sophisticated investors and financial institutions.

Mr Wee Sing Guan, Chief Financial Officer said “The Company was looking at raising S$150,000,000 to meet its immediate funding needs. Nevertheless, we decided to set up the Programme as it gives us the ability to rapidly access funds from the debt capital markets in the future if we so choose. We believe that our timing for the issue is ideal given that interest rates are currently low. We were able to achieve a coupon of 3.00% per annum for this first series off the Programme, which we feel is excellent considering it is for a five year funding.”

“Although we set up such a Programme with a limit of S$500,000,000, we may not drawdown the entire programme amount,” the President and Chief Executive Officer, Mr Tan Kwi Kin added, “but it’s good to have it available so we can capitalise on any opportunities that present themselves. This funding flexibility is important to SembCorp Marine as the offshore and marine industry is expected to be robust this year and in the near term.”

BY ORDER OF THE BOARD
Kwong Sook May (Ms)
Company Secretary

For media & analysts enquiries, please contact:

Judy Han (Ms)
Vice President
Investor Relations & Communications
Tel No : (65) 6262 7203
Fax No : (65) 6261 0738
Email : judy@sembcorpmarine.com.sg

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