ICBC participates in $330 million syndicated loan with Majan Electricity Company (MJEC) for general corporate purposes (Linked to Project ID#96402)

In April 2016, Majan Electricity Company (MJEC) — a subsidiary of Oman’s Electricity Holding Company S.A.O.C. (EHC) that manages power networks in some of Oman's regions — signed a $330 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, National Commercial Bank, Industrial & Commercial Bank of China (ICBC), Union National Bank, Bank of Bahrain and Kuwait, Bank of China, and Al Khaliji Commercial Bank. ICBC's contribution to the syndicate is captured via Project ID#96401. Bank of China's contribution is captured via Project ID#96402. 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 April 2016 (0.903%). 2. The exact monetary value of ICBC and Bank of China's contributions to the $330 million syndicated loan tranche are unknown. For the time being, AidData assumes equal contributions ($27,500,000) across the 12 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. (also known as Nama Holding) for approximately $1 billion.

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