Noble May Rise; Raises US$80M For Refinancing

2353 GMT [Dow Jones] Noble Group (N21.SG) may test current December high of S$1.10 as news of supply chain manager raising US$80 million shows banks still confident in company’s business model amid slowing commodities demand, tight credit conditions. Amount raised from 2-year Islamic loan facility, arranged by HSBC, will be used to refinance existing debt, for working capital. While Noble’s balance sheet widely regarded as more resilient than those of other Singapore-listed commodity firms, investors still wary how company will be affected by reduced demand, falling prices for commodities. But OCBC Investment Research says Noble’s diversification strategy will pay off; “we take comfort in the group’s business model, which generates earnings from a diversity of activities, namely marketing fees, assets and arbitrage. Further diversification is derived from its pipeline of varied commodities spanning energy, agriculture and metals.” Stock closed flat at S$1.04 yesterday. (FKH)