6 September 2004
Titan Obtains US$700 million term loan facility

Titan, Malaysia's first and largest integrated producer of olefins and polyolefins and second largest polyolefins producer in Southeast Asia announced today that it had mandated Standard Chartered Bank (“SCB”) to arrange a US$700 million Floating Rate Term Loan Facility (the “Facility”).  The borrower for this Facility will be Titan Capital (L) Limited, a wholly owned subsidiary of Titan.  Other banks which are leading the loan syndication are Malayan Banking Berhad (“MBB”) and RHB Bank (L) Ltd (“RHB”).  The Facility is fully underwritten by SCB, MBB and RHB.

The purpose of the loan is to refinance Titan’s existing term loan.  The existing term loan was taken out by Titan in 1997 to finance Titan’s significant “Phase II Expansion” of its integrated complex in Pasir Gudang and Tanjung Langsat in Johor.

The new Facility has a repayment period of up to 7 years.  The loan is guaranteed by Titan and its three primary operating subsidiaries. 

According to Mr. Donald M. Condon, Jr., Managing Director of Titan, "This new facility is undertaken as part of Titan’s long-term financial strategy to maintain a very strong balance sheet and affords Titan with a more optimal repayment profile, as well as increased flexibility.”

He added,” We are seeing a strong recovery in the global petrochemicals industry that allows us to improve our financial position significantly and position Titan for attractive future growth.  We are well positioned in Malaysia and throughout the region, including major markets like China, Vietnam, Bangladesh and the Middle East. Strong support from our existing lenders and from the leaders of this new loan syndication clearly demonstrates their confidence in Titan’s business fundamentals and its future.”

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