Titan affiliate raises $20m to fund oil terminals expansion

A Titan Petrochemicals Group's affiliate has raised HK$156.6m ($20m) by subscribing to notes in China StorageCo, another of its affiliate, in an attempt to expand its oil terminal operations. Titan Oil Storage Investment Limited (TOSIL), a wholly-owned subsidiary of Titan, has on Thursday exercised the right and the subscription is expected to be completed on 21 January 2011. TOSIL and investment firm Warburg Pincus had in July 2009 entered into an option agreement to provide financing to China StorageCo by the subscription of the terminal operator's notes. Titan owns 50.1% of China StorageCo while the remaining 49.9% is owned by Warburg Pincus. Titan, a downstream logistics oil firm, engages China StorageCo to expand its oil terminal operations in China. China StorageCo's oil terminal operations currently cover Nansha (Guangdong Province), Quanzhou (Fujian Province) and Yangshan (near Shanghai). Hong Kong-listed Titan is also into the business of ship repair, ship building, petroleum transportation and distribution.