Bumi Armada’s wholly owned subsidiary Armada Kraken in Singapore has secured a loan and a standby letter of credit worth $755m.

The loan was offered to Armada Kraken by Export-Import Bank of Malaysia, Maybank International, National Bank of Abu Dhabi, Oversea-Chinese Banking, RHB Bank, Sumitomo Mitsui Banking and The Bank of Nova Scotia.

The company plans to use the syndicated loan term to refinance an existing bridge loan that was secured on 31 March 2014 for its Armada Kraken floating production, storage, and offloading vessel (FPSO) project.

"Using the loan, the company will part-finance and reimburse all vessel costs."

Using the loan, the company will part-finance and reimburse all vessel costs.

The company will also be able to fund the acquisition and conversion of the FPSO.

In addition, Armada Kraken can finance refurbishment, mobilisation, transportation, hook-up and mooring, and installation of the vessel, along with all ancillary and associated works.

According to Bumi Armada, the final maturity of the loan would fall within eight years.

Earlier in December 2013, Armada Kraken had signed a bareboat charter contract worth $1.4bn with EnQuest Heather for deployment of the vessel at the Kraken Oilfield located in the UK sector of the North Sea.

Malaysia offshore oilfield services provider Bumi Armada is present in around 18 countries spread across five continents and provides services through its four business units.