Muscat: Nama Holding, the Sultanate’s state-owned holding company in the electricity sector, has awarded the second phase of the advisory and mandated lead arrangement assignment to a consortium of Bank Muscat and JP Morgan to raise approximately OMR750 million.
The agreement will include some of Nama companies, which are Oman Electricity Transmission Company, Muscat Electricity Distribution Company, Mazoon Electricity Company, Majan Electricity Company, Dhofar Power Company and Rural Area Electricity Company.
Thisfollows the success of the first phase of the financial restructuring and long-term borrowing programmeof Nama Holding subsidiaries which was characterised by increased participation interest by more than two-fold in most financial arrangements, whereby Nama Group was able to gain the confidence of financing partners, diversifying funding sources and widen its network of financial partnerships from regional banks to international banks.
This long term fundraising advisory agreement supports Nama Group’s capital expenditure of the distribution and transmission network. “The funds will be utilised to support our subsidiaries’ investment plans. Tranche II of the project comprises of three phases; procurement of bridge loans, advisory and implementation”, said Hussain Al Balushi, chief financial officer of Nama Group.
“The plans are focused on delivering projects that support our growing customer base of 6 per cent per annum, improve the efficiency of our asset base, and to extend networks for the new generation capacities which are required to support new industrial projects and related electricity demand,” he added.
Nama Group is a group of joint stock companies registered in Oman. The group consists of ten companies operating in the electricity generation, procurement, transmission, supply and distribution. The companies were established as a result of restructuring the electricity sector in 2004. Commercial operations for the subsidiary companies started on May 1, 2005. Nama Group includes Nama Holding, Majan Electricity Company, Mazoon Electricity Company, Muscat Electricity Distribution Company, Oman Electricity Transmission Company, Oman Power & Water Procurement Company, Rural Areas Electricity Company, Wadi Jizzi Power Company, Al Ghubrah Power and Desalination Company and Dhofar Power Company, and a training center called “Nama Institute for Competency Development.