Hosts meeting with prospective investors and local & international Banks in the Sultanate
Muscat | December 30, 2013: Achieving yet another milestone in continued growth of the industrial sector in the Sultanate, Bank Sohar has announced the launch of a debt syndication facility for the Greenfield Steel Project by Moon Iron & Steel Company SAOC (MISCO), being set up in phase 7 of Sohar Industrial Estate. This follows a formal signing ceremony with Moon Iron & Steel Company (MISCO) in November 2013, whereby the Bank was appointed as the sole arranger for tying up the entire project debt requirement of USD 257 million.
Mr. Mervyn Fernando, DGM & Head Corporate Banking commented on the announcement, “At Bank Sohar, we are proud to be associated with this project as it will not only be a significant contributor to the industrial sector in the Sultanate, but will bring all-round development and increased employment opportunities for locals. As part-financers, we are pleased to announce that the initial meeting was a success with all local banks and a few foreign banks operating in the Sultanate showed keen interest as well. Bank Sohar is committed towards supporting viable industrial projects in Oman and we look forward to coming up with similar initiatives in future to support this vision.”
Bank Sohar hosted a kick-off meeting on December 23, 2013 at The Chedi, Muscat as the sole arranger and part lender of the Greenfield Steel Project. Interested parties and institutional investors gathered to learn about the new project, while the investment benefits from participating in the debt syndication programme were highlighted through a series of detailed presentations by the bank. The Greenfield Steel project has been fully evaluated by the Project Finance & Syndication Department of Bank Sohar, with an Information memorandum (IM) being formalised, which describes the project and the terms of the proposed debt syndication. The IM was shared with other interested parties to identify their appetite to participate in the funding requirements for the Greenfield Steel project.
The welcome address at the evening’s event was delivered by Mr. Ali Abdul Hossain Al Lawati, Chief Manager, Corporate Banking. Thereafter, Mr. Sanjeet Kumar Verma, Head of Project Finance & Syndication showcased a detailed presentation of the Projects terms of transactions. He also mentioned that the project co-ordinates have been mostly tied up, contractual structures are in place, most of the statutory clearances have been obtained and the company has also entered into firm arrangements for procurement of raw materials and off-take of finished goods.
Finally, Mr. Mervyn Fernando, DGM & Head Corporate Banking delivered the vote of thanks to all the guests for being a part of the event, and lending their support. He also discussed challenges of the project at macro level for Banks operating in the Sultanate and a need to operate with a healthy competitive environment.
As one of Oman’s most dynamic financial institutions, Bank Sohar is consistently working toward promoting the industrial sector in the Sultanate, to strengthen the economy as well as provide increased opportunities for development within the country.