Overview

• Former Hyflux vice-president Nah Tien Liang testified that lenders estimated desalination cash flows could support only about S$150 million to S$170 million of debt, with concerns centered on the power side of Tuaspring.
• Emails shown in court included Olivia Lum’s note about needing to convince banks on the energy strategy and DBS seeking assurance on projected electricity revenue, indicating senior management awareness.
• After initial in‑principle interest from six banks, only DBS, Mizuho and SMBC ultimately provided S$150 million for the desalination plant, which required a S$252 million base equity commitment before Hyflux later shifted to shareholder loans, preference shares and a 2013 Maybank refinancing.
• The prosecution alleges Hyflux failed to disclose that low‑price water sales to PUB were to be underpinned by electricity sales from a first‑time power plant, tying charges to a March 2011 SGX announcement and an April 2011 preference‑share document.
• Weak electricity revenue later contributed to Hyflux’s collapse, leaving about 34,000 investors owed S$900 million, and the criminal trial has moved to defense cross‑examination following Tuesday’s testimony.