Oman Oil signs $1.85bn revolving credit pact
Credit is between Oman Oil and 16 regional and international banks
Oman Oil Company has signed a $1.85bn Revolving Credit Facility agreement with sixteen different local, regional and international banks, Reuters has reported.
As part of the deal the Sultanate's oil compay can access $1bn over a three-year period, while the rest of the funds $850mn will be received over a five-year term.
Oman Oil has announced that the revolving credit will be used for general corporate purposes as part of the company's growth strategy. The official closing ceremony will be held in Muscat at the end of this month.
The transaction has been seen as proof of Oman's financial stability and confidence in the solid track-record achieved by OOC and its group of companies.
OOC has also announced a that the RCF has reached an oversubscription of $3.75bn by participating banks.
In a similar move May this year Oman Oil Refineries and Petroleum Industries Company signed a $2.8 bn loan with a consortium of banks fund an expansion plan for its refinery in the industrial city of Sohar and other projects, Reuters said in a report.