Finance News

Arab Bank signs $609m loan deal with Salalah

Arab Bank Group has recently signed a $609 million loan agreement, as part of a consortium of international and regional banks, for the benefit of the Oman-based Salalah Methanol Company.

The Arab Bank plays the role of Mandated Lead Arranger in the deal, the highest level of participation. The loan will be used to finance the final stage of Salalah Methanol project undertaken by Oman Oil Company. The project is being implemented in accordance with the latest international standards and specifications. Production of methanol at the commercial level will start in the first half of 2010 at a daily capacity of 3000 MT, using liquefied natural gas supplied by Oman's Oil and Gas Ministry.

Arab Bank's Chairman Abdel Hamid Shoman said the bank is keen on financing projects that play a significant role in economic development in the region, with focus on all industrial fields so as to push forward Arab industries, and industrial exports in particular.

Shoman explained that the growing size of investments in the oil and energy sector in Arab countries, especially oil producing and exporting ones, in light of the growing international demand on oil and its derivatives, has prompted Arab Bank and other regional and international peers to secure funding for a series of projects under expansion or in the pipeline.

Salalah Methanol will provide an opportunity for establishing industrial projects based on the methanol derived from natural gas. The Salalah Methanol Company is owned by Oman Oil Company (90%) while the remaining stake is owned by Oman Energy Trading.

Source: The Peninsula
Date: 25.11.2007 [ID: 144]

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