BankMuscat extends RO 77 million term loan facility to ORPC
MUSCAT, 2 January 2010 – BankMuscat, the leading financial services provider in the Sultanate, recently signed a RO 77 million (US$ 200 million) term loan facility with Oman Refineries & Petrochemicals Company (ORPC) to partly refinance its working capital needs. The dual currency facility will be available either in Omani Riyal or US dollar and has a maturity period of up to 25 months.
AbdulRazak Ali Issa, Chief Executive of BankMuscat, and Masoud Al Msalmy, GM- Corporate Support and Acting Chief Executive Officer of ORPC, signed the term loan agreement. ORPC, a wholly-owned government company established vide Royal Decree No. 99/2007, has two refinery plants at Mina Al Fahal and Sohar.
Highlighting the significance of the mandate, AbdulRazak Ali Issa said:
“This is a significant milestone in the long standing relationship between BankMuscat and ORPC. BankMuscat is focused on playing a prominent role in projects that are of national importance and this association will further strengthen this approach. The Bank is grateful to the Government of Oman and the management of ORPC for their confidence in the Bank. The
Project and Structured Finance activity of the Bank, which stands out in the region, will continue to focus on major national projects such as ORPC.”
Commenting on the loan agreement, Al Msalmy said:
“ORPC is pleased to sign the term loan facility with BankMuscat, a renowned local bank. Our business relationship has grown over the years and we look forward to further mutually beneficial deals.”
In line with the government’s strategy for economic diversification and attracting private sector participation, BankMuscat has taken the lead to be a frontrunner in financing most of the Sultanate's infrastructure projects. The Bank has been closely involved in privatisation projects of the government as well as major industrial projects.
The Project Finance team comprises experienced specialists, who, over the years, have developed considerable expertise in project finance, debt structuring, loan syndication, equity arranging, and advisory services. With the largest underwriting capacity amongst Omani banks and strong corporate relationships, the Bank has the ability to add considerable value to project financing transactions.