Subsea cable ship operator OMS Group has secured more than $1 billion in new financing to fund the build-out of new vessels.

The company this week said it has successfully raised the financing of $1.0315bn facilities.

The financing comprises $911.5 million in corporate facilities, trade facilities, and export credit agency-backed (ECA) term loan facilities, as well as an additional $120m of trade facilities pending financial close.

The ECA-backed facilities, supported by Atradius Dutch State Business N.V. and Export Finance Norway (Eksfin), will support OMS Group’s investment in four new fiber-optic cable-laying vessels scheduled for delivery in 2027 and 2028.

HSBC Singapore and Standard Chartered Bank acted as Joint Global Coordinators, Bookrunners and ECA Coordinators, while KKR Capital Markets acted as Corporate Adviser for the transaction.

The financing involved 14 banks as corporate facility lenders and 12 banks as ECA facility lenders.

“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 CEO of OMS Group. “With these four new-build 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.”

Founded in 1983, Optic Marine Group is based in Selangor, Malaysia. The company provides subsea cable installation and maintenance. Currently, OMS operates six cable laying and repair vessels – the most recent, the CS Cable Vigilance, launched in 2023 – as well as two barges and three tugboats.

OMS’ new fiber-optic cable-laying vessels, CS Genesis and CS Triumph, are under construction in Haiphong, Vietnam, with delivery targeted for 2027 and 2028, respectively. The upcoming CS Resilience and CS Alliance, meanwhile, are under construction in Gdynia, Poland, with both targeted for delivery in 2028.

“HSBC is honored 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,” said Edward Hui, Head of Export Finance, Asia, HSBC. “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.”

In 2024, OMS Group secured $300 million in loans through a syndicated facilities agreement with a financial institution consortium to expand its cable ship fleet. The company also announced plans to invest $300m in subsea and cable infrastructure in September 2024. KKR invested $400m into the company in 2023.

Abhishek Pandey, global head of transportation finance, Standard Chartered, added: “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.”

Cable ships are few and far between. According to the ISCPC, there are around 60 cable ships in operation, many of which are more than 30 years old. With more than 400 subsea cables running and demand increasing, a limited supply of vessels can delay projects and slow repairs.