11 June 2011
MUSCAT -- National Bank of Oman (NBO), mandated as the Underwriter and Mandated Lead Arranger for a term loan of $193 million to finance the first Aluminium Rolling Mill in Oman, along with BankDhofar as the other participating bank, recently concluded the signing of the Financing Agreement with Aluminium Rolling Mill Company LLC. The term loan is for part-financing the capital expenditure for the project.
The signing ceremony was held in the presence of senior management members from Oman Oil Company, Takamul Investment, BankDhofar and NBO. The project to be set-up in Sohar Industrial Estate is promoted by Takamul Investment Company, the downstream investment arm of Oman Oil Company. The project envisages setting up of manufacturing facilities for the manufacture of 160,000MT of aluminium per annum and will be the largest downstream buyer of Sohar Aluminium. The cost of the Project is estimated at $396 million.
Continuous Casting, the latest technology in aluminium rolling will enable the project to use molten aluminium supplied by Sohar Aluminium for manufacturing rolled coils. This will enable the company to produce aluminium sheets of very thin gauges and high surface quality with shorter product delivery time and lower energy cost.
The financial closure for the project within the budgeted time frame has kick-started the engineering work by the EPC contractor FATA of Italy and the promoters are confident of meeting the dead line for commencement of operations in August 2013.
Speaking on the occasion, Humayun Kabir, NBO's General Manager -- Wholesale Banking, said: "NBO places very high value on its relationship with Oman Oil Company and Takamul Investment and we assure them of our dedicated support. NBO will remain committed to projects of national importance, from start up through to project completion and working capital financing thereafter, by offering unique solutions".
Mohammad Redha Jawad, Acting CEO of BankDhofar, thanked NBO for giving them the opportunity to participate in the financing of a project of national importance and wished the project a strong and a steady growth. He mentioned that BankDhofar is committed to the development of the country and has extended finance to almost all major projects in the Sultanate. He is hopeful of many such opportunities for co-operation in the near future between the two banks.
Nabil al Ghassani, Chief Executive Officer, Takamul Investment Co. SAOC, stated that the project is so far considered the largest project of the added value to be implemented by the company in the field of aluminium and it will provide more than 270 direct job opportunities. He added that 'this project will provide a number of further downstream investment opportunities which will open the door for more financing opportunities by local banks." He thanked NBO and BankDhofar for their support in providing finance for the project.
MUSCAT -- National Bank of Oman (NBO), mandated as the Underwriter and Mandated Lead Arranger for a term loan of $193 million to finance the first Aluminium Rolling Mill in Oman, along with BankDhofar as the other participating bank, recently concluded the signing of the Financing Agreement with Aluminium Rolling Mill Company LLC. The term loan is for part-financing the capital expenditure for the project.
The signing ceremony was held in the presence of senior management members from Oman Oil Company, Takamul Investment, BankDhofar and NBO. The project to be set-up in Sohar Industrial Estate is promoted by Takamul Investment Company, the downstream investment arm of Oman Oil Company. The project envisages setting up of manufacturing facilities for the manufacture of 160,000MT of aluminium per annum and will be the largest downstream buyer of Sohar Aluminium. The cost of the Project is estimated at $396 million.
Continuous Casting, the latest technology in aluminium rolling will enable the project to use molten aluminium supplied by Sohar Aluminium for manufacturing rolled coils. This will enable the company to produce aluminium sheets of very thin gauges and high surface quality with shorter product delivery time and lower energy cost.
The financial closure for the project within the budgeted time frame has kick-started the engineering work by the EPC contractor FATA of Italy and the promoters are confident of meeting the dead line for commencement of operations in August 2013.
Speaking on the occasion, Humayun Kabir, NBO's General Manager -- Wholesale Banking, said: "NBO places very high value on its relationship with Oman Oil Company and Takamul Investment and we assure them of our dedicated support. NBO will remain committed to projects of national importance, from start up through to project completion and working capital financing thereafter, by offering unique solutions".
Mohammad Redha Jawad, Acting CEO of BankDhofar, thanked NBO for giving them the opportunity to participate in the financing of a project of national importance and wished the project a strong and a steady growth. He mentioned that BankDhofar is committed to the development of the country and has extended finance to almost all major projects in the Sultanate. He is hopeful of many such opportunities for co-operation in the near future between the two banks.
Nabil al Ghassani, Chief Executive Officer, Takamul Investment Co. SAOC, stated that the project is so far considered the largest project of the added value to be implemented by the company in the field of aluminium and it will provide more than 270 direct job opportunities. He added that 'this project will provide a number of further downstream investment opportunities which will open the door for more financing opportunities by local banks." He thanked NBO and BankDhofar for their support in providing finance for the project.
© Oman Daily Observer 2011
