Oman Oil Company Exploration and Production (OOCEP), a subsidiary of Oman Oil Company (OOC), has entered into an agreement to raise $1 billion pre-export loan, the company said in a statement.
The five-year financing agreement is structured as a crude oil pre-export facility and contains an accordion option to allow additional funding of $500 million if required. The company will use the proceeds for further expansion.
The transaction, priced at 170 basis points over the London Interbank Offered Rate (Libor), attracted keen interest from the global finance community and closed heavily oversubscribed by a group of international banks.
OOC chief executive Eng. Isam Al Zadjali said, “We are delighted with the strong response and competitive pricing achieved in this OOCEP inaugural external financing, despite challenging market conditions. It is an expression of confidence in OOCEP’s future outlook from leading international banks. Our ability to attract this funding is a testament to the hard work of our employees and our continued growth in the upstream sector.”
“Our investment in OOCEP has matured to the point where the company can finance itself and directly contribute to OOC’s expansion plans in support of the continued growth and diversification of Oman’s economy, he added.
The facility attracted some of the leading names in international banking. Natixis and SocieteGenerale Corporate & Investment Banking acted as initial mandated lead arrangers, bookrunners and coordinators, joined by HSBC Bank Oman as initial mandated lead arranger and coordinator. CréditAgricole Corporate & Investment Bank, Credit Suisse, ING, IntesaSanpaolo and Sumitomo Mitsui Banking Corporation joined the deal as initial mandated lead arrangers, while ABN Amro Bank, Mitsubishi UFJ Finance Group and Mizuho Bank acted as mandated lead arrangers.