Kuwait: Kuwait International Bank (KIB) continues to be committed to developing and expanding its financing footprint on local, regional and international levels. Accordingly, the Bank has participated, as a Mandated Lead Arranger, in the USD 235M syndicated Ijarah facility for Mazoon Electricity Company in Oman, along with a consortium of local and regional banks. This one-year bridge facility, which can be extended for an additional year, aims to support Mazoon’s pre-approved CAPEX plans for 2021, related to the expansion of the electricity distribution network.
Commenting on the successful closure of this transaction, Mohamed Khadiri, General Manager of the International Banking and Large Corporate Department at KIB, said: “The successful syndication of this debut Islamic facility is a major milestone in Mazoon’s efforts to tap Islamic funding. Against a backdrop of challenging market conditions, the facility was 2.4 times oversubscribed which reflects Mazoon’s strong business fundamentals and confirms its strong credit appetite”.
Khadiri added: “Our participation in this syndicated facility comes as part of KIB’s strategic vision to provide Islamic financing solutions to semi-government and government-affiliated entities, as well as large private conglomerates across the region.”
Khadiri concluded by saying: “This deal adds to KIB’s portfolio of noteworthy achievements and its strong track record in providing Sharia-compliant financing products and services, as well as financial advisory to the corporate sector. We will continue our efforts to pursue KIB’s strategic objectives in order to strengthen and cement our position as a leading banking institution amongst local and regional banks, as we continue to fulfill the needs and requirements of our customers."
Established in 2005, Mazoon is part of the main electricity grid referred to as the Main Interconnected System in Oman and holds the monopoly and exclusive license to distribute and supply electricity in Dakhliya, Sharqiya and South Al Batinah regions. Mazoon is a closely held Omani Joint Stock Company indirectly wholly owned by the Government of Sultanate of Oman through its holding company for the electricity and water sector, Electricity Holding Company SAOC (“Nama Holding”), which is in turn fully owned by Oman’s sovereign wealth fund Oman Investment Authority.
© Press Release 2021