(MENAFN- Muscat Daily) Muscat -
OCTAL, the world's leading supplier of clear rigid packaging materials, on Tuesday announced that it has secured US$625mn finances as a loan from a consortium of local as well as foreign banks.
According to the company officials, this financial deal of US$625mn with various banks consists of two parts: US$225mn for capital expansion and remaining US$400mn for working capital facilities.
The new term loan facility has been provided by seven local and international banks: Bank Muscat, BankDhofar, National Bank of Oman, Standard Chartered Bank, HSBC Bank Oman, National Bank of Bahrain and Bank ABC. Bank Muscat's investment banking division is acting as the financial advisor for the deal, the company said.
'Addleshaw Goddard Oman acted as the lenders' legal counsel and OCTAL was advised by Al Busaidy, Mansoor Jamal & Co (AMJ). Bank Muscat is also acting as the documentation bank, facility agent, security agent and the account bank for the transaction.'
Speaking at a press conference held at the Al Bustan Palace, A Ritz Carlton Hotel on Tuesday, Nicholas Barakat, chief executive officer of OCTAL said that the deal signed by the company is one of the biggest private sector financing deals of the last decade.
'We are pleased by our lenders' support, and their confidence in the high-quality of our asset base, strong operating performance and plans to deliver value for all stakeholders. With this momentum, we have greater flexibility to implement our strategy, underpinned by innovation, growth and optimisation,' Barakat said.
The meeting was also addressed by Scott Ewen, chief financial officer of OCTAL. He said, 'The granting of the credit facilities means that we can build on our strong capabilities, capitalise on future growth opportunities, further enhance our strong cash position and position ourselves for our next phase of growth in PET sheet, while channelling more money into the Omani economy.'
Ewen said, proceeds from the deal would be utilised in setting up six new manufacturing lines. The work on two such lines have already started while the work on another two would start next year and the remaining two in 2021.
Operating from Salalah Free Zone, OCTAL has emerged as the largest PET sheet producer and integrated packaging company in the world. In 2018, the company recorded a revenue of US$830mn and this year, it is expecting to touch over US$1bn in revenue.
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