NBB Group closes debut Islamic facility for Mazoon Electricity as sole structuring, bookrunning and arranging bank

The debut Islamic financing facility by the Oman-based GRE was signed

NBB Group closes debut Islamic facility for Mazoon Electricity as sole structuring, bookrunning and arranging bank

Manama, Bahrain: The NBB Group, comprising of the National Bank of Bahrain B.S.C and Bahrain Islamic Bank B.S.C, has announced closing an Ijara facility for Oman based Mazoon Electricity Company SAOC (MZEC), with the Group acting as the sole Structuring, Arranging and Bookrunning banks on the facility.

The debut Islamic financing facility by the Oman-based GRE was signed 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 area in Oman.

The facility is structured as a 2-year ijara 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.

Commenting on the achievement, Group Chief Executive – Corporate & Institutional Investment Banking at NBB Group, Hisham AlKurdi, said: “The NBB Group is delighted to advise and arrange financing for strategically important transactions such as the electricity distribution and supply sector in Oman. The success of a debut Islamic facility by Mazoon Electricity paves the way to attract capital from Islamic financiers for critical infrastructure. As the national bank of the Kingdom of Bahrain, NBB Group views Oman as one of its key markets and is proud to be associated with Mazoon Electricity and Nama Holding on this transaction.”

“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 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 the Omani Sovereign Wealth Fund Oman Investment Authority.

The deal comes as part of the NBB Group’s continuous efforts to further develop its activities and offerings, targeting both Bahraini and strategic GCC customers.

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