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

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.

Additional details

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.

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