Apr 14 2012 |
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Raysut Cement to seek new RO 64 million funding
By Staff Reporter MUSCAT -- Raysut Cement , the Sultanate's largest cement producer, has announced that its Board of Director has approved moves for a fresh term loan of RO 64 million from three Omani banks.The Board granted its nod at its meeting held on Wednesday. Accordingly, Raysut Cement will seek RO 64 million in funding from BankDhofar, BankMuscat and Oman Arab Bank to refinance the existing loan of a higher instalment and interest burden totalling about RO 19 million a year, for a tenure of five years.
According to Raysut Cement , the new loan will help extend the tenure of the loan from 5 to 10 years, thereby reducing the instalment and interest rate, which will require an outgo of about RO 6-7 million during the first three years.
Further, the move will enable instalments to be paid in a stepped up manner so that the load is more towards the end. "This would provide us with the flexibility in cash flow to make available more funds for investment as well as to pay healthy dividend," Mohammed bin Ahmed al Dheeb, Group CEO, said in a disclosure notification to the Capital Market Authority.
Besides, the new loan will help fend off pressure from the existing consortium of bankers that required Raysut Cement and its subsidiaries to mortgage all their present and future properties against the loan, Al Dheeb added.
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