Oryx Stainless Enhances Financing to Fuel Global Expansion Efforts

Oryx Stainless Group Secures Extension of Credit Lines

Oryx Stainless Group has recently taken a major step forward by extending its existing syndicated credit lines ahead of schedule. This move showcases the company’s commitment to enhancing its financial foundations as it continues to pursue dynamic growth strategies. The asset-based financing amounts to €110 million, with an initial term set for three years and an option for a two-year extension. Additionally, there is an opportunity to increase the credit volume to €130 million, further emphasizing the company's proactive approach in managing its financial capabilities.

Purpose of the Syndicated Loan Agreement

The primary aim of this syndicated loan agreement is to provide a flexible financing solution tailored to the needs of Oryx Stainless’s working capital. It also serves as collateral for commodity hedging transactions. This strategic financing will play a crucial role in supporting the European group's operational needs. Notably, Oryx Stainless Malaysia has recently been integrated as a new borrower in this agreement, demonstrating the global scale of their operations.

Growth in Asia's Market

Asia has rapidly emerged as a vital market for Oryx Stainless, complementing its strong presence in Europe. Oryx Stainless Thailand, which boasts over a decade of successful operations in the ASEAN region, has successfully positioned itself as the market leader. Initially financed through the European credit agreement, Oryx Thailand has now transitioned to an innovative revolving credit facility, amounting to one billion Thai baht, as part of a club deal with local banking partners, solidifying its financial stability and growth prospects.

Support from Leading Financial Institutions

The consortium behind the European syndicated loan has sustained its structure for many years, with HSBC Germany acting as the sole bookrunner. The consortium includes reputable financial institutions such as Commerzbank, DZ Bank, and Rabobank, all of whom serve pivotal roles as mandated lead arrangers. Furthermore, NRW.Bank and Stadtsparkasse Düsseldorf also contribute as lead arrangers, emphasizing the robust support network that Oryx Stainless has formed over the years.

Longstanding Collaboration with Financial Partners

According to Roland Mauss, CFO of Oryx Stainless, the longstanding relationship between HSBC Germany and Oryx Stainless spans approximately twenty-five years. This enduring partnership has not only facilitated successful financing but has also significantly contributed to the company's above-average growth and sustainable development. The collaborative efforts have solidified Oryx Stainless's position as a global player in stainless steel recycling.

HSBC's Commitment to Oryx's Growth

Dr. Michael Schleef, CEO of HSBC Germany, reaffirmed the bank’s commitment to Oryx Stainless Group. He expressed enthusiasm for supporting the extension of their syndicated credit facility and providing additional products and services. This collaboration underscores the potential that can be unleashed through combined strengths in both European and Asian markets.

About Oryx Stainless Group

The Oryx Stainless Group, which operates under its parent company Oryx Stainless Holding B.V., has established itself as a prominent international player in the trade and processing of recycled stainless steel. This sustainable raw material is essential for stainless steel production. The group's customer base encompasses manufacturers of various stainless steel products across the globe. To meet its operational demands, Oryx Stainless maintains a broad and continually expanding international procurement base, ensuring that it can deliver excellent service alongside a well-functioning transport infrastructure.

Frequently Asked Questions

1. What recent financial move has Oryx Stainless made?

Oryx Stainless has extended its existing syndicated credit lines to strengthen its financial structure and support growth strategies.

2. What is the total volume of the extended credit lines?

The total volume of the asset-based financing amounts to €110 million, with potential expansion up to €130 million.

3. Why is the credit facility important for Oryx Stainless?

The credit facility provides essential financing for working capital and collateral for commodity hedging, allowing Oryx Stainless to operate effectively.

4. How has Oryx Stainless expanded in Asia?

Oryx Stainless has established significant operations in Asia, particularly through its subsidiary in Thailand, which has become a market leader in the region.

5. Who are Oryx Stainless's major financial partners?

Major financial partners include HSBC Germany, Commerzbank, DZ Bank, and Rabobank, contributing to the company's financing arrangements.

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