1. INTRODUCTION

Bumi Armada Berhad ("Bumi Armada" or the "Company") wishes to announce that its wholly-owned subsidiary, Armada TGT Ltd  ("Armada TGT") has secured a loan facility of USD64.3 million (approximately RM270.86 million) with a final maturity date on 31 December 2021 from ING Bank N.V., Singapore  pursuant to the terms of a Facility Agreement dated 29 February 2020 (“Facility”).

2. INFORMATION ON ARMADA TGT

Armada TGT is a company incorporated in the Republic of the Marshall Islands and is a wholly owned subsidiary of Bumi Armada.

The principal activities of Armada TGT are ship owners, charterers, managers of ships and vessels, and provision of marine support and other services to offshore oil and gas companies.

Armada TGT owns the FPSO Armada TGT 1 which is currently servicing a charter contract with Hoang Long Joint Operating Company in the Te Giac Triang field for a firm charter period from 27 August 2018 until 14 November 2024 (“Bareboat Charter”).

3. INFORMATION ON THE FACILITY

The Facility is intended for Armada TGT to fund, amongst others, the repayment of its existing loan from the Company, transaction expenses and financing costs.

The repayment of the Facility will be via charter proceeds from the Bareboat Charter and the security for the Facility is the standard security package for this type of loan facility.

4. EFFECTS OF THE FACILITY

Issued and Paid-up Share Capital and Substantial Shareholding

The Facility will not have any effect on the issued and paid-up share capital of Bumi Armada or the substantial shareholders’ shareholdings in Bumi Armada.

Earnings

The Facility is not expected to have any material effect on the earnings of Bumi Armada for the financial year ending 31 December 2020.

Net Assets and Gearing

The Facility is not expected to have any material effect on the net assets and gearing of the Bumi Armada Group based on its latest audited consolidated balance sheet as at 31 December 2018.

5. DIRECTORS AND MAJOR SHAREHOLDER’S INTERESTS

None of the Directors and/or Major Shareholders of the Company or persons connected with them have any interest, direct or indirect in the Facility.

6. DIRECTORS’ RECOMMENDATION

The Board of Directors of Bumi Armada is of the opinion that the Facility is in the best interests of the Company.

This announcement is dated 2 March 2020.

*Based on the exchange rate of USD1 : RM4.2125 on 2 March 2020 as set out in Bank Negara Malaysia’s website.