Dubai-based oilfield services firm Topaz Energy & Marine has secured a $550m conventional and Islamic multi-tranche financing facility.

The facility was arranged over three tranches and will be used principally to refinance existing debt and fund its expansion plans.

The joint lead arrangers were the UK’s Standard Chartered Bank and HSBCadvised by Dentons. Gulf International Bank, Emirates NBD, Noor Bank and First Gulf Bank were also arrangers on the deal.

The first tranche is a conventional and Islamic senior secured, term loan of $350m over seven years which will be used principally to repay existing senior debt.

The second is a senior secured, conventional and Islamic revolving credit facility of $100m over five years. The third tranche is a senior unsecured conventional and Islamic term loan of $100m.

These will be used to fund growth capital expenditure.

The new facility significantly lowers Topaz’s finance costs. The facility will also extend the maturity of Topaz’s debt profile over the next seven years from its previous profile of four years.

“We have not only secured lower pricing, but have also extended the maturity of our debt profile, which will increase liquidity, lowering Topaz’s overall risk,” said Rene Kofod-Olsen, CEO of Topaz. “The new facility gives Topaz the ability to continue to invest in its strategy and capture the long-term growth opportunity of our markets.”

Topaz is a subsidiary of Oman’s Renaissance Services. Renaissance secured RO45.3m ($117.8m) of financing toward Duqm permanent workers accommodation project earlier in May.