Cover Story: Oil & Gas Conundrum


Dateline 2017-12-21, The Edge:

MALAYSIA-based oil and gas outfit De Raj Group AG has just received the requisite approvals for a listing on the Frankfurt Stock Exchange in Germany.

When asked why the company opted for a listing so far from home, CEO Vaidyanthan Nateshan says things are difficult in Malaysia, referring particularly to the debt market.

“It’s not the equity market that is tough, it’s the debt market. We are well capitalised and need financing for executing projects. The Malaysian debt market is dead … asset cover here is 2.5 to 3 times while in Europe, it is 0.8 times,” he tells The Edge in a short phone conversation last Friday.

“We have bankers telling us they won’t touch oil and gas companies with a barge pole, so I’m taking the company to Europe.”

 

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