Standard Chartered, Oman Shipping sign $110mn finance facility pact

Business Sunday 15/September/2019 17:49 PM
By: Times News Service
Standard Chartered, Oman Shipping sign $110mn finance facility pact

Muscat: A $110 million refinancing facility for three tanker vessels and two very large crude carriers (VLCCs) was announced on Sunday by Standard Chartered and Oman Shipping Company (OSC), a member of the Asyad Group.
The signing ceremony took place at Asyad’s headquarters and was attended by senior executives from Standard Chartered Oman, Asyad Group and Oman Shipping Company. The facility has been solely arranged by Standard Chartered.
Sunday’s announcement is a clear indication of the strength of OSC’s balance sheet and the support the company enjoys from Asyad Group, both of which were key factors in negotiations. This new financing facility will enable Oman Shipping Company to optimise its debt position by reducing overall borrowing costs and eliminating refinancing risk, all while diversifying the company’s pool of financial partners.
The agreement also highlights Standard Chartered’s commitment to assisting economic growth in Oman and will help OSC explore opportunities to expand its offering yet further – supporting the company’s ever-growing customer base and connecting them to global markets through its full-service fleet of over 50 world-class vessels.
“We are truly privileged to lend our expertise and resources in support of our clients. This deal gave us the opportunity to work across teams globally to propose the most optimal and innovative financing solutions for Oman Shipping Company," Hussain bin Ghalib Al Yafai, Chief Executive Officer, Standard Chartered Oman, said.
"Over more than 50 years, Standard Chartered has served the Omani community and contributed to its economy and infrastructure development. We are strongly committed to the Sultanate and dedicated to continuing supporting our clients as they expand and grow their businesses globally,” he added.
Michael Jorgensen, Acting Chief Executive Officer, Oman Shipping Company, said: “We are delighted to have agreed on this substantial finance facility for five of our vessels with Standard Chartered. OSC is growing from strength to strength, and today’s announcement will help us explore opportunities to expand our full-service shipping offering yet further.”
Asyad’s OSC is an integral part of Oman’s drive to become a top-ten global logistics hub and is supporting the integration of all supply chain activities in the Sultanate – providing customers with rapid and unrivalled distribution capabilities across the Middle East, as well as acting as the region’s gateway to global markets. OSC is a full-scale shipping company handling ship owning, technical management and chartering.