Oman refineries to refinance old debt
Posted: 27 August 2007
 Send this article
 Print this article
The state-owned Sohar Refinery and Oman Refinery are planning to refinance old debt, before merging operations of two refineries.
The borrowing from international lending institutions is expected to be in the region of $1.37 billion while a special team is looking into the matter and they are in the final stage to conclude the deal with lending institutions, he added.
Nasser Al Jashmi, Under-Secretary, Oil and Gas Ministry, said the plan is to refinance the entire debt taken for building Sohar Refinery, reported Oman Daily Observer
As much as 90 per cent of Sohar Refinery’s capital expenditure was funded by way of term loan. The term loan of $1.170 billion for Sohar Refinery was provided by eleven international and regional institutions, including the Japanese Bank for International Co-operation.
Al Jashmi reportedly said that refinancing is required for merging both refineries, which are fully owned by the government.
HSBC Holdings, Oman Refinery's Financial adviser, is reportedly seeking bids from major lenders for refinancing. The loan for the newly-set up Sohar Refinery was taken with the backing of its assets. However, the assets and liabilities of both refineries will be clubbed together to make a single entity, after the merger. |
