Sohar Islamic named Mandated Lead Arranger for Oman Cement expansion

PHOTO

MUSCAT: Publicly listed Oman Cement has announced that it has appointed Sohar Islamic Bank as its Mandated Lead Arranger (MLA) to secure the funding necessary to finance the capacity expansion of its Misfah plant.

Salim bin Abdullah al Hajry, CEO – Oman Cement, said in a filing to the Capital Market Authority (CMA) on Sunday that it has “executed an Expression of Interest document for arranging funds for the (expansion) project with Sohar Islamic Bank”.

Late last year, Oman Cement, the country’s first cement producer, announced that the expansion would consist of the construction of a new production line (Line 4) with a capacity of 10,000 tonnes per day (TPD) of cement. Additionally, the existing Line 3 production facility is proposed to be upgraded to a capacity of 5,000 TPD of cement, up from the present 4,000 TPD capacity.

The capacity increase is designed to meet domestic cement demand growth, reduce import dependence, and also add value to local resources. This increase will be achieved via the construction of a new production line, the company stated. A number of engineering firms are bidding for its contract to expand the capacity of plant.

Separately, Oman Cement is investing around RO 10 million to enhance environmental safeguards at the Misfah plant. In addition to improvements to Productions Lines 1 and 2, the company plans to install solar panels to generate green electricity for the main building, as well as upgrade the air quality control system.

The government’s 51 per cent stake in Oman Cement, the country’s first cement manufacturer, is held by Oman Investment Authority (OIA), the integrated sovereign wealth fund of the Sultanate of Oman.