Financing secured at home for Omani VLOCs

 

Muscat: A signature ceremony took place yesterday for a long-term financing agreement, worth ORY137m, financing a four VLOC project for Oman Shipping Corporation. The VLOCs are part of the Vale shipping expansion project, each one roughly 400,000 dwt in size. 

Dr Ahmed Bin Mohammad Al-Futaisi, the minister of Transport and Communication, and vice president of Oman Shipping, said that the agreement comes within the company's orientations to widen the base of strategic partnerships with local partners, in order to help the Omani local economy, affirming that Omani banking institutions are capable of financing giant projects in the Sultanate, without the need to source finance overseas.

This financing agreement is considered to be the largest of its kind to be undertaken by the Omani banking sector. The finance came entirely from two banks, Muscat Bank and Dhofar Bank.

The agreement lasts for the next 12 years with the line paying installements every six months.  [08/10/13]

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