Nama Group plans to float open tender

Business Monday 04/June/2018 14:39 PM
By: Times News Service
Nama Group plans to float open tender

Muscat: Nama Group has commenced preparations to launch Tranche 3 of Lamar Project (funding programme) by floating an open tender. This is limited to established local and international banking institutes for organising long-term funding to support the capital expenditure programme of transmission and distribution companies.
The group has taken this initiative after successful completion of Tranche 1 and 2 of long-term fund raising programme.
The objective of floating the open tender is to appoint a Mandated Lead Arranger (MLA) to raise an amount of OMR453 million approximately for 2019-2021. The funds raised by the long term funding arrangements would be used to meet the capital expenditure needs for expansion and enhancement of the transmission and distribution networks and refinancing of short term loans.
The company said that there are three phases under Tranche 3. Phase 1 being the organising of short term loans, Phase 2 being the 'advisory' phase and Phase 3 being the 'arrangement/implementation' phase, including the hedging advisory and execution for the associated fund raising.
The companies for which funding will be used are Oman Electricity Transmission Company (OETC), Mazoon Electricity Company (MZEC), Muscat Electricity Distribution Company (MEDC), Majan Electricity Company (MJEC), Dhofar Power Company (DPC) and Rural Areas Electricity Company (Raeco).
Nama Group is in its growth phase as continues to plays a very significant role in the development of nation’s economy. The group has invested heavily in capital assets to expand and develop its networks and systems to satisfy the requirements and demands of the market. Availability of capital funding is critical to the successful achievement of Nama Group objectives.
The group has made significant progress in Lamar Project since its launch in 2014. Nama Group, led by Nama Holding, has successfully so far raised funds worth OMR1.72 billion across various funding sources and tenors.
Diversification of sources, optimisation of rates and hedging of the interest rates have helped the group achieve its target financial cost metrics efficiently within their allowed price control returns, while meeting the electricity security standards.
Nama Group consists of several joint stock companies registered in the Sultanate of Oman. These include among others, Mazoon Electricity Company (MZEC), Muscat Electricity Distribution Company (MEDC), Majan Electricity Company (MJECO), Dhofar Power Company (DPC), Rural Areas Electricity Company (Raeco), Oman Electricity Transmission Company (OETC), Gubrah Power and Desalination Company (GPDC), Wadi Jizzi Power Company (WAJPC), and Oman Power and Water Procurement Company (OPWP).