StanChart supports $12 bn worth of financing deals for Oman this year

Leading international bank Standard Chartered continues to play a pivotal role in supporting the fund-raising initiatives of the Omani government and various state-backed entities that in the past six months alone have resulted in financing deals totalling a hefty $12 billion.

Fund-raising efforts spearheaded by the global lender have led to the successful closure of, among other financing deals, the Omani government’s $5 billion international bond issue, and $2 billion sukuk issue, as well as project finance linked to the implementation of a pair of major midstream and petrochemical ventures.

The magnitude of this financing support, according to a highlevel executive, is a demonstration of StanChart’s commitment to helping the Omani government and related entities tide over funding shortfalls stemming from the current low environment.

“Standard Chartered Bank has been extremely active over the past couple of years in the institutional lending, infrastructure finance, project debt and corporate finance space, among other areas,” said Hussain al Yafai, Head of Global Banking in Oman.

“During the last six months of this year, Standard Chartered Oman has been involved in around $12 billion worth of financing for the government, its related entities and key projects. We expect to see more funding being announced over the next 6 to 12 months, which exemplifies our broader commitment oil price to Oman, the local population, our workforce and the growth of our franchise in the Sultanate.”

Deficit budgets mean that the government and government-related entities (GREs) can no longer rely on equity cheques to fund infrastructure projects, according to Al Yafai. “They are now turning to innovative structures, involving capital markets, project finance, sale and leaseback arrangements, and so on — tools that StanChart has effectively harnessed to deliver effective and competitive financing solutions to our anchor government clients,” he said.

Besides serving as Mandated Lead Arrangers (MLA) and Bookrunners for the Omani government’s $5 billion international bond issue and $2 billion sukuk issue, StanChart was also MLA for wholly government owned Oman Oil Company’s $1.15 billion revolving credit facility (RCF).

Furthermore, in its capacity as Financial Advisers and Mandated Lead Arrangers, StanChart also supported the financing of the recently concluded Salalah LPG Extraction Project ($640 million debt) and ammonia