SINGAPORE (June 8): Pacific Radiance announced Thursday that it has been granted $85 million in loans under two government-backed financing schemes to help tide over the prolonged offshore and marine (O&M) industry downturn.

The two programmes – the Internationalisation Finance Scheme (IFS) by International Enterprise (IE) Singapore and the Bridging Loan (BL) scheme by Spring Singapore – will help support the group’s working capital needs over the medium term.

The IFS was enhanced late last year to allow O&M companies to borrow up to $70 million. Pacific Radiance also managed to secure a maximum loan of $15 million under the BL scheme.

The government will take on 70% of the risk share for both the IFS and BL loans.

Pacific Radiance says it has accepted letters of offer from and has entered into facility agreement with two of its principal bankers – United Overseas Bank (UOB) and DBS Bank.

“Even though vessel utilisation and charters rates are bottoming out, market conditions will remain challenging in the near term,” says Pacific Radiance’s executive chairman, Pang Yoke Min.

“To withstand the headwinds ahead, we will continue to refine our cost structure, extend our reach in key markets and work closely with our lenders to manage our working capital and loan repayments to sustain our business for the long term,” Pang adds.

Shares of Pacific Radiance closed 1 cent lower at 9.3 cents on Thursday.