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Overview

ICBC participates in $260 million syndicated loan with Dhofar Electricity Company for general corporate purposes

Commitments (Constant USD, 2023)$19,429,398
Commitment Year•2015Country of Activity•OmanDirect Recipient Country of Incorporation•OmanSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 1, 2015
Last repayment (originally scheduled)
Aug 29, 2025

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Intergovernmental Organizations

  • Arab Petroleum Investments Corporation (APICORP)
  • Bank of Bahrain and Kuwait B.S.C (BBK)

Private Sector

  • Ahli Bank Oman
  • Ahli United Bank
  • Arab Bank
  • Bank Dhofar
  • Europe Arab Bank

State-owned Banks

  • Abu Dhabi Commercial Bank PJSC (ADCB)
  • Arab Banking Corporation (Bank ABC)
  • National Bank of Abu Dhabi PJSC (NBA)
  • Qatar National Bank Q.P.S.C. (QNB)
  • Union National Bank (UNB)

State-owned companies

  • Export Development Canada (EDC)

Receiving agencies

State-owned companies

  • Dhofar Power Company

Loan description

ICBC contributes to USD 260 million syndicated loan with Dhofar Electricity Company for general corporate purposes

Interest rate (t₀)•4.04275%Interest type•Variable Interest RateMaturity•10 years

Narrative

Full Description

Project narrative

In September 2015, Dhofar Power Company (DPC) — a subsidiary of Oman’s Electricity Holding Company S.A.O.C. (EHC) that generates, transmits, distributes and supplies electricity in the Salalah region in the southwest of the sultanate — signed a $260 million syndicated loan agreement with a set of Chinese and non-Chinese banks for general corporate purposes. Participants in the loan syndicate included Arab Banking Corporation, Arab Petroleum Investments Corporation, Abu Dhabi Commercial Bank, Ahli United Bank, Ahli Bank Oman, Export Development Canada, Bank Dhofar, Qatar National Bank, Industrial & Commercial Bank of China, Union National Bank, Bank of Bahrain and Kuwait, Arab Bank, Europe Arab Bank, and National Bank of Abu Dhabi (NBAD). JP Morgan and Bank Muscat Investment Banking served as mandated lead arrangers. The loan carries a 10-year maturity (final maturity date: 2026) and an estimated interest rate of LIBOR plus a 3.5% margin.

Staff comments

1. AidData has estimated the all-in interest rate by adding 3.5% to average 6-month LIBOR in September 2015 (0.537%). 2. The exact monetary value of ICBC’s contribution to the $260 million syndicated loan tranche is unknown. For the time being, AidData assumes equal contributions ($18,571,428) across the 14 known members of the syndicate. 3. EHC is also known as Nama Holding. 4. The Electricity Holding Company S.A.O.C. (EHC) is a closed joint stock company registered under the Commercial Companies Law of Oman on 19/10/2002 and commenced business on 16/9/2003. EHC is wholly owned by the Government of The Sultanate of Oman. 5. Dentons served as a legal adviser to the borrower. Latham & Watkins, Al Busaidy, Mansoor Jamal & Co served as legal advisors to the Joint Lead Managers. 6. In December 2019, State Grid International Development Co., Limited (SGID), the sole platform for overseas investments and operations of the State Grid Corporation of China, acquired a 49% stake in Oman Electricity Transmission Company (OETC) from Electricity Holding Company S.A.O.C. (EHC, also known as Nama Holding) for approximately $1 billion.