Muscat: Bank Nizwa has signed an agreement to provide a structured financing facility of $50 million to Hydrocarbon Finder (HCF), an independent oil and gas exploration and production company promoted by the Services and Trade Group.
The bank’s Sharia-compliant package is tailored to meet the requirements of HCF, which has been granted concession rights by the Government of Oman for oil and gas exploration, development and production within an onshore geographical area in Oman termed as Block 7, said a bank release.
“Our financing products have backed the growth of the Sultanate’s real estate and mining industries, and today, as a proven and trusted establishment, we are excited to add the oil & gas sector to our roaster of corporate clients. Our partnership with Hydrocarbon Finder E is a translation of Bank Nizwa’s commitment to diversify its portfolio and play a key role in spurring private sector growth, and contributing to Oman’s economic prosperity,” said Dr. Jamil El Jaroudi, chief executive officer of Bank Nizwa.
Hydrocarbon Finder is part of the Services & Trade, a leading Oman based business conglomerate that has significant business interests in diverse sectors such as interior fit-out and contracting, information technology, healthcare, mining, fast moving consumer goods, trading, and real estate across Oman and with established operating companies in Gulf Cooperation Council (GCC) region, United Kingdom, Italy, India and Sri Lanka.
The facilities agreement was signed by Dr Jamil El Jaroudi, chief executive officer of Bank Nizwa and Brigadier General (Retd) Sulaiman Al Adawi, group chairman of the S&T Group, in the presence of Sheikh Ahmed bin Saif Al Rawahi, deputy chairman of Bank Nizwa on February 10 in Muscat. The signing ceremony was also attended by Waqas Al Adawi, vice-chairman of S & T Group, and Rohit Walia, executive chairman of Alpen Capital, along with senior members from their respective teams.
At the signing, S&T group chairman, Brigadier General (Retd) Suleiman Mohammed Yahya Al Adawi remarked: “Hydrocarbon Finder represents the S&T Group’s entry into upstream oil & gas. This deal is a very important business vertical for us and one which holds strong growth potential for the future. We are delighted with the support and commitment shown by Bank Nizwa towards our new venture and look forward to a long and mutually beneficial relationship with the bank. We also thank Alpen Capital for partnering with us and advising us on this important concession financing arrangement.”
Rohit Walia, executive chairman of Alpen Capital, Oman, the Financial Advisor to the S&T Group for this transaction, said: “We are glad to support Hydrocarbon Finder E&P LLC in this new and important business initiative. It is very gratifying to see that our Oman team has been able to contribute towards development initiatives in the country and work with local businesses to support their needs.”
Since inception, Bank Nizwa has been at the forefront of Islamic banking and finance in the Sultanate, providing innovative corporate and retail Sharia-compliant banking and finance propositions. In 2015, the bank was the first to offer an Islamic financing facility to a key player in the mining sector and continues to expand its products and services to cater to the requirements of other industries within the burgeoning market.