Arab Bank Group has recently signed a $1.37 billion loan agreement, as part of a consortium of international and regional banks, for the benefit of Oman Oil Refinery Company. The Arab Bank plays the top role in the deal as the Mandated Lead Arranger.
The company will use the loan to refinance loans for Sohar Refinery and Oman Refinery after the two entities merged under the new name: Oman Refineries and Petrochemical Company."
Arab Bank's Chairman/CEO Abdel Hamid Shoman welcomed Arab Bank's participation in the loan, highlighting the Bank's role in financing key and vital projects that contribute in a tangible and direct way to increased oil production capacity in Oman.
He pointed out the massive growth in the Sultanate's oil sector in particular and the Gulf region in general, saying it has a huge export markets and enjoys good growth rates with potential for further development. He stressed Arab Bank's commitment to supporting the oil industry in Oman, where the oil sector is one of the most productive industries.
In addition to the fact that the loan goes as direct support to a leading production sector in the Sultanate, it also features proper risk distribution and helps expand the Bank's client base in line with the policies and strategic plans of Arab Bank.
The merger, the largest in Oman, came in fulfillment of Royal Decree No 99/2007. Oman's Finance Ministry owns 75 percent of the new company's stake, with the remaining shares possessed by Oman Oil Company.