Standard Chartered Plc made a $75 million investment in Topaz Energy & Marine Ltd., the first investment in the United Arab Emirates by the bank’s private equity arm.
The deal will give Standard Chartered Private Equity a 9.8 percent stake in Topaz, the company said today in a statement. Topaz, a subsidiary of Oman-listed Renaissance Services SAOG, provides oilfield-service vessels for the offshore energy industry, focusing on the Middle East and Caspian Sea. Proceeds will be used to pay for new vessels and an expansion into new markets, the company said.
The investment follows the company’s raising of $350 million from the bond markets to fund capital expenditure last October. Topaz would consider an initial public offering to improve liquidity, Chief Executive Officer Rene Kofod-Olsen said in an interview with Abu Dhabi’s The National in May. The company canceled a planned share sale in London in March 2011, citing market conditions. Its chief executive at the time stepped down months later after Renaissance Services uncovered financial fraud.
“Bringing in institutional funds is a key part of the board’s strategic capital markets plan,” Samir Fancy, Topaz’s chairman, said in the statement. “The diversification of our sources of capital puts Topaz firmly on the path to eventual independence.”