OMS Group raises USD $1.03 billion for cable vessels

OMS Group has raised USD $1.0315 billion in corporate and export credit agency-backed financing, including support for four new cable-laying vessels.

The package includes USD $911.5 million in corporate facilities, trade facilities and export credit agency-backed term loans, with a further USD $120 million in trade facilities still pending financial close. Atradius Dutch State Business and Export Finance Norway are backing the ECA-supported portion.

HSBC Singapore and Standard Chartered acted as Joint Global Coordinators, Bookrunners and ECA Coordinators, while KKR Capital Markets was Corporate Adviser. In total, 14 banks joined as corporate facility lenders and 12 as ECA facility lenders.

Both the corporate and ECA-backed facilities were oversubscribed by more than two times, drawing demand from existing banking partners and new regional and international lenders.

Fleet expansion

The ECA-backed loans will help fund OMS Group's investment in four fibre-optic cable-laying vessels due for delivery in 2027 and 2028. The vessels are designed to be more fuel-efficient and will expand the group's cable-laying fleet as demand for subsea connectivity rises.

That demand is being driven by growth in cloud computing, artificial intelligence and data centres, all of which require greater international data transmission capacity. Subsea cable systems are central to that infrastructure, carrying most cross-border internet traffic and connecting data centres, telecoms networks and landing stations.

OMS Group operates across marine cable installation and related digital infrastructure services. Its OMS Telco division covers submarine cable installation, installation support and marine maintenance, while its LitUp Network unit focuses on interconnect managed services including cable landing stations, network backhaul, data centre connectivity and fibre ownership.

OMS Group currently operates five owned cable vessels, with four more under construction. Once delivered, the new ships are expected to expand the group's ability to carry out deep- and shallow-water fibre-optic cable work, shore-end installation, engineering, project management, permitting, subsea surveys and maintenance.

Lender appetite

The transaction combines corporate lending, trade finance and export credit-backed borrowing in a single package. Such structures are often used for capital-intensive maritime and infrastructure assets because they widen the pool of lenders and can align debt terms more closely with vessel construction and delivery schedules.

The facilities were structured through a coordinated process designed around the characteristics of OMS Group's industry and expansion plans. The use of export credit support from Dutch and Norwegian agencies also reflects the international supply chain behind specialised vessel construction.

"This financing supports our long-term growth plans and continued investments in the group's end-to-end digital infrastructure capabilities," said Ronnie Lim, Group Chief Executive Officer of OMS Group.

"With these four newbuild vessels, we aim to strengthen our cable-laying capacity and help customers build the networks that underpin global digital growth. We thank our lenders, export credit agencies and advisers for their commitment and confidence in OMS."

For the banks involved, the deal adds to a growing flow of financing linked to digital infrastructure and supporting marine assets. As traffic growth pushes operators to add capacity and resilience, cable owners and service providers have been investing in both terrestrial and subsea networks, while lenders have continued to show interest in long-duration, infrastructure-backed exposure.

"HSBC is honoured to have jointly led this transaction for OMS Group, combining our export finance expertise, international network and deep understanding of OMS's growth ambitions to deliver a tailored, ECA-backed vessel financing solution. The financing will support OMS's fleet expansion and continued investment in its digital infrastructure business, helping the company meet the evolving needs of its customers," said Edward Hui, Head of Export Finance, Asia, HSBC.

"This transaction demonstrates how deep sector expertise, strategic advisory, structured solutions and strong international partnership can come together to support our clients' long-term investment plans. OMS Group is well positioned to capture the significant opportunities arising from the continued expansion of global digital infrastructure, and Standard Chartered is proud to support the group's next phase of growth and continued investment in its capabilities," said Abhishek Pandey, Global Head of Transportation Finance, Standard Chartered.