MANAMA: The NBB Group, comprising the National Bank of Bahrain and Bahrain Islamic Bank, has closed a $235 million ijara facility for Oman-based Mazoon Electricity Company (MZEC), with the group acting as the sole structuring, arranging and bookrunning bank on the facility.
Mazoon electricity is owned by the government of Oman through its holding company for the electricity and water sector, Nama Holding.
The proceeds will be used to finance the capital expenditure plans of MZEC for 2021, mainly comprising investments in the electricity distribution and supply network in its licence area in Oman.
Structured as a two-year ijara bridge facility, it is the first Islamic finance loan for Nama Group.
The facility received interest from regional banks of Bahrain, Kuwait and the UAE with 12 financiers participating and an oversubscribed order book.
NBB Group chief executive for corporate and institutional investment banking Hisham AlKurdi, said: “The NBB Group is delighted to arrange financing for strategically important transactions such as the electricity distribution and supply sector in Oman.
“The success of the debut facility by MZEC paves the way to attract capital from Islamic financiers for critical infrastructure. NBB Group views Oman as one of its key markets and is proud to be associated with Mazoon and Nama Holding on this transaction.”
MZEC CEO Salim Al Kamyani said, “The inaugural Islamic financing facility is a milestone transaction for Mazoon Electricity, adding new banking relationships to the group and providing it access to Islamic financiers of the region to fund the investment in electricity distribution infrastructure of the country.”
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