OMS Group secures $1.03B debt to build four subsea cable vessels
What's the deal? Malaysia's OMS GroupDealroom has a profile for this one. Try Dealroom → has raised US$1.03 billion (about US$1.05B) in debt financing to fund its expansion, including four new fibre-optic cable-laying vessels. HSBC and Standard Chartered led the package, which was oversubscribed by more than two times.
The breakdown: The deal comprises US$911.5 million in corporate, trade, and export credit agency-backed term loan facilities, plus a further US$120 million in trade facilities pending financial close. Export credit agencies Atradius Dutch State BusinessDealroom has a profile for this one. Try Dealroom → and Export Finance NorwayDealroom has a profile for this one. Try Dealroom → back the vessel financing. KKR Capital MarketsDealroom has a profile for this one. Try Dealroom → acted as corporate adviser.
Why now? OMS builds subsea telecommunications infrastructure. The four fuel-efficient vessels, due in 2027 and 2028, will expand its cable-laying capacity as cloud computing, artificial intelligence, and data-centre growth drive demand for subsea links.
What's the endgame? "With these four newbuild vessels, we aim to strengthen our cable-laying capacity and help customers build the networks that underpin global digital growth," said chief executive officer Ronnie Lim. The raise dwarfs OMS's earlier funding — a US$400 million KKR investment in 2023 and roughly US$292.5 million in syndicated loans in 2024.
By the numbers: The round ranks in the 95th percentile among debt rounds for telecom companies in Malaysia over the trailing 48 months, based on a sample of 52 deals.
What could go wrong? Cable projects are competing for a limited, ageing specialist fleet, and industry reports flag vessel availability as a growing bottleneck. The financing's payoff depends on OMS delivering the ships and converting added capacity into contracts.
The signal: Strong lender appetite — both facilities were more than twice oversubscribed — points to deep conviction in subsea infrastructure as AI and cloud demand reshape global connectivity.
Read more: nst.com.my
Image credit: Generated with Gemini
