Oil and gas exploration and production company KrisEnergy is to transfer its multi-bank revolving credit facility (RCF) to the books of just one bank, DBS.

In March of this year, the company had extended its RCF for a 12-month period, with terms including the repayment of US$55mn of the US$150mn total (to be raised through the course of 2016) by July 2016.

However, KrisEnergy has substituted the terms of the contract to reduce the lenders from three to one, thereby making the terms above no longer relevant, director of business development Richard Lorentz tells GTR.

“In addition, we are now negotiating a refinancing of the RCF with DBS and we expect to announce the results of those negotiations in due course,” he adds.

The other banks on the deal were HSBC, Commonwealth Bank of Australia and ANZ, who all acted as mandated lead arrangers when the RCF was signed in March. The decision to work exclusively with DBS was made because the Singapore-listed company wished to work with a local bank.

Lorentz explains: “We are a Singapore-listed company and as such we believe it is prudent to work with local financial institutions. We have had contacts with DBS for several years regarding working together and the time and transaction now appear suitable for both parties.”

The finance was initially mooted for use in the development of assets in the Gulf of Thailand, Bangladesh and Indonesia.