Oman-listed Phoenix Power Company said on Wednesday that it is in discussions with local banks to refinance its existing financing facilities, targeting completion by end-June 2026, subject to regulatory and lender approvals.

The company, which operates the gas-fired 2,000 megawatts (MW) Sur Independent Power producer (IPP) project, said a successful refinancing could support improved dividend distributions for the current financial year but cautioned there is no certainty the transaction will close within the expected timeline, but said.

Last month, the company announced the signing of a new Power Purchase Agreement (PPA) with Nama Power and Water Procurement Company (Nama PWP) to replace the current 15-year agreement. 

The new PPA would be effective from 1 April 2029 and up to 31 March 2044.

Phoenix Power’s original project debt facility was $1.194 billion, with a $38 million standby facility. The loans, priced at SOFR plus applicable margin, were fully drawn in 2014 and are being repaid semi-annually, with final maturity due on 28 December 2028.

As of first quarter 2026, the company’s gross debt stands at about $294 million, consisting of secured term loans from commercial banks, JBIC, and NEXI, according to its unaudited financial statements. Approximately $96.2 million is classified as current maturities (due within 12 months), while a further $196.7 million sits as non-current liabilities. 

Finance costs fell 21 percent year-on-year to $4.49 million in the first quarter of 2026, according to the statement, reflecting ongoing amortisation of the debt.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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