Bank Muscat, Bank Dhofar together with National Bank of Oman, Standard Chartered as well as HSBC, National Bank of Bahrain and Bank ABC provided the loan.
Tuesday 16, July 2019 BY MUZORIWA KUDAKWASHE
Oman-based OCTAL has secured $625 million of financing facility comprising of a syndicated term loan facility of $225 million and working capital facilities aggregating to $400 million to refinance some of its existing debt and to fund expansion.
Scott Ewen, the Chief Financial Officer, said that this deal allows the company to increase its production by almost 100,000 tonnes of sheet, from the current production of around 250,000 tonnes.
According to a local daily, the new $225 million loan is split into two tranches with maturities of four and a half years and seven years while the $400 million working capital facilities provided by a syndicate of banks are required to back the import and export sides of OCTAL's business.
OCTAL stated that Bank Muscat is also acting as the financial adviser in this transaction.
Last year, the company hired Citi, Credit Suisse, as well as HSBC and Standard Chartered to arrange a $300 million bond issue, its debut in the international debt markets, however, the issuance was pulled in October, at a time of choppy conditions across emerging markets.