Nama plans to raise OMR750 million fund

The long term fund raising advisory agreement was signed with Bank Muscat and JP Morgan for meeting Nama group’s capital expenditure.

MUSCAT: Nama Holding, the Sultanate’s state-owned holding company for the electricity sector, has awarded the second phase of an advisory and mandated lead arrangement assignment to a consortium of Bank Muscat and JP Morgan to raise around OMR750 million.

The agreement will include some of Nama companies, which are Oman Electricity Transmission Company (OETC), Muscat Electricity Distribution Company (MEDC), Mazoon Electricity Company, Majan Electricity Company, Dhofar Power Company (DPC) and Rural Area Electricity Company (RAEC).

This follows the success of the first phase of the financial restructuring and long-term borrowing programme of Nama Holding subsidiaries which was characterised by increased participation interest by more than two-fold in most financial arrangements, whereby Nama Group was able to gain the confidence of financing partners, diversifying funding sources and widen its network of financial partnerships from regional banks to international banks.

The long term fund raising advisory agreement supports Nama Group’s capital expenditure of the distribution and transmission network. “The funds will be utilised to support our subsidiaries’ investment plans. Tranche II of the project comprises of three phases; procurement of bridge loans, advisory and implementation”, said Hussain Al Balushi, chief financial officer of Nama Group.

“The plans are focused on delivering projects that support our growing customer base of 6 per cent per annum, improve the efficiency of our asset base, and to extend networks for the new generation capacities which are required to support new industrial projects and related electricity demand,” he further added.