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Majan Electricity in Oman launches $165mn loan

The facility, which has a tenor of 10 years, is being co-ordinated by Bank Muscat and JP Morgan

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Majan Electricity, a subsidiary of Electricity, or Nama, Holding Co., has kick-started the syndication of a $165mn facility as part of its parent company’s overall plan to raise $2bn across its subsidiaries.

The facility, which has a tenor of 10 years, is being co-ordinated by Bank Muscat and JP Morgan. The company plans to divide the loan into two tranches with the possibility of having an Islamic component, according to a banker close to the deal.

State owned Electricity Holding Co. (EHC) first announced it plans to raise $2bn through a combination of loans and bonds in February.

Oman Electricity Transmission Co. (OETC), another subsidiary of EHC, raised $500m thought a 10 year bond in May, reported Global Capital.

“The company is trying to combine all the grids and bring it under Nama Holding,” said a regional banker. “They have different guys producing electricity for each region with different tariffs and rates so there is an initiative to bring it under one umbrella.”

Oman’s budget deficit for 2017 has swelled to $7.8bn as the oil price slump weighs on its economy.

The government’s wide ownership of companies has led it to try to borrow through those where possible, reported Global Capital.

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