Hyflux gets $17m MHIL funding for TuasOne, MayBank ends pact with Tuaspring

Source: Hyflux headquarters in Singapore. (Photo by Mayuko Tani, Nikkei Asian Review)

Singapore-based water treatment firm Hyflux Ltd on Tuesday said that Mitsubishi Heavy Industries Ltd has injected an additional equity commitment of approximately S$23 million ($16.96 million) ahead of time into the TuasOne waste-to-energy project as part of a February binding agreement.

The update follows the recent announcement of a potential $294.94-million deal between UAE-based Utico FCZ and the beleaguered Hyflux. Per the contours of the proposed deal, Utico will be picking up 88 per cent stake in Hyflux.

The transaction is currently pending stakeholders’ approvals. Utico, the largest private full-service utility and developer in West Asia, is one of seven potential investors of Hyflux. It had earlier extended the deadline for signing a binding agreement with embattled Singapore company to June 27. Utico’s shareholders and investors include the governments of Oman, Saudi Arabia, Bahrain, and Brunei.

In a parallel development, Malayan Banking Berhad (Maybank), one of Hyflux’ bankers for its now-defunct subsidiary, Tuaspring Pte Ltd, has notified early termination of one of the hedging agreements it entered into with the latter in November 2013.

Maybank has also demanded a sum of S$33.60 million ($24.78 million) as the amount payable on account of early termination of the hedging pact.

“Maybank has also issued a calculation statement to Tuaspring on 12 July 2019 asserting that the amount payable in respect of the Early Termination Date under the 22 November 2013 ISDA Master Agreement is S$33,600,133.33,” per the filing.

The early termination clause, invoked by Maybank on July 12, 2019, comes after a series of alleged events of default and termination events, the Hyflux filing noted.