Oman’s Electricity Holding Company raises $325m loan

Oman’s Electricity Holding Company (EHC) has signed an agreement for a $325m working capital loan, the state-owned company’s finance chief said on Tuesday.

The company, which holds the Omani government’s stake in nine electricity firms, has raised the funds to support four of its distribution subsidiaries, Hussain Al Balushi told Reuters.

Bahrain’s Bank ABC coordinated the facility, which has a one-year maturity extendable for an additional year. Gulf International Bank, National Bank of Abu Dhabi and Standard Chartered were also part of the group, said Al Balushi.

The facility was divided on a pro rata basis among the four subsidiaries, said a banker close to the situation.

Dhofar Power Company raised $25m, Muscat Electricity Company $80m, while Majan Electricity Company and Mazoon Electricity Company raised $100m and $120m respectively, said the banker.

Oman has been seeking alternative sources of funding over the past years as lower oil prices eroded the state’s coffers.
The government sold a $2.5bn dual-tranche bond in June, and followed up the fundraising exercise in September with a $1.5bn tap of the same bond.

On the loan side, both the Omani government and Petroleum Development Oman, which is majority-owned by the government, raised syndicated loans this year of $1bn and $4bn, respectively.