Mazoon Electricity Company SAOC (MZEC), a subsidiary of Nama Holding, announced signing of its debut Islamic financing facility for an amount of US$ 235,000,000. 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 license areas in Oman.

The facility is structured as a 2-year Ijarah bridge facility marking the first Islamic bank facility for Nama Group that has in the past raised several conventional bank loan facilities and issuances in the debt capital markets under RegS and 144a format, including a 10-year US$ 500,000,000 debut Sukuk in 2017. The facility received interest from regional banks of Bahrain, Kuwait and United Arab Emirates with 12 financiers participating in the facility and an oversubscribed order book.

National Bank of Bahrain B.S.C (NBB) and its subsidiary Bahrain Islamic Bank B.S.C acted as the Structuring, Arranging and Bookrunning banks on the facility.

“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 Sultanate”, said Mr. Salim Said Al Kamyani, Chief Executive Officer of Mazoon Electricity.

“We are very pleased with the support received from Islamic financiers to this transaction and it reinforces the confidence placed by a broad array of capital providers in the transparent and robust regulatory framework of the electricity sector of Oman and its strong credit fundamentals”, said Mr. Ahmed Tufail, Group Chief Financial Officer of Nama Holding.

Mazoon Electricity is a closed Omani Joint Stock Company owned by the Government of Sultanate of Oman through its holding company for the electricity and water sector, Nama Holding. Nama Holding is owned by Oman’s sovereign wealth fund Oman Investment Authority (“OIA”). Mazoon Electricity company was established in 2005 as a result of the restructuring of the electricity sector and 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 Al Dakhliya, South Al Sharqiya, North Al Sharqiya, and South Al Batinah regions, in addition to Suwaiq city in North Al Batinah region.

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About Mazoon Electricity Company

​​​​​​​​​​​​​​​​​​​​Mazoon Electricity Company SAOC (MZEC) is a closed Omani joint stock company registered under the Commercial Companies Law of Oman. The company is primarily undertaking regulated distribution and supply of electricity in Al Dakhiliya, South Al Sharqiya, North Al Sharqiya, South Batinah governorates and Suwaiq in North Batinah governorate under a license issued by the Authority of Public Services Regulation, Oman (Previously known as Authority Electricity Regulation - AER). The establishment and operations of the company are governed by the provisions of the Law for Regulation and Privatisation of the Electricity and Related Water Sector (the Sector Law) promulgated by the Royal Decree 78/2004.

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