Oman Oil Signs $1.85bn Two-Part Loan Facility

Oman Oil Co, the sultanate’s state-run oil firm, has completed a $1.85 billion two-part loan deal with a group of mainly international lenders, two sources familiar with the matter said on Thursday, with the cash to be used for general business purposes.

The revolving credit facility was signed a few days ago and is split between a $1 billion three-year tranche and an $850 million piece with a five-year lifespan, the sources said, speaking on condition of anonymity as the information isn’t public.

Funding was provided on a broadly equal split between the around 15 banks which contributed to the transaction, one of the sources added.

Oman Oil did not respond to requests for comment.

Financing activity in Oman, in particular in the project finance space, has picked up in 2014 as a number of infrastructure schemes come to market, after a period of relatively little activity outside the local banking market.

Oman Oil Refineries and Petroleum Industries Company (Orpic) signed a $2.8 billion loan with a consortium of banks in May to fund various projects including an expansion plan for its refinery in the industrial city of Sohar.

Meanwhile, Electricity Holding Company, the holding firm for all electricity firms in the sultanate, plans to raise $2.1 billion from a loan or bond issue by the middle of next year and has hired JP Morgan and Bank Muscat to advise it on financing options, its chief executive was quoted as saying in June.