Mashreq closes $205m syndicated credit facility for Omantel with heavy over subscription

The deal represents the debut debt offering for the majority government owned, largest telecom operator in Oman.

"A well structured transaction, combined with the strong financial position of Omantel, made it possible to generate significant demand from regional and international banks despite challenging market conditions," stated Mr. Abbas Hasan, Head of Investment Banking at Mashreqbank.

Dr. Mohammed Bin Ali Al-Wohaibi, the Chief Executive Officer of Omantel said that this deal constitutes a fresh step by the company towards entering the international financial market for its external investments in the telecom sector. It would expand the company's investment base not only in the Sultanate but also at the regional and international levels.

The following banks joined the syndication; KfW IPEX-Bank GmbH, National Bank of Oman S.A.O.G., Oman International Bank S.A.O.G., Bank Sohar S.A.O.G., Commerzbank Aktiengesellschaft, Fortis Bank S.A./N.V., Lloyds TSB Bank Plc, Bank of Taiwan, Singapore Branch, Banque Bia, Chinatrust Commercial Bank Co., Ltd., First Gulf Bank, Hua Nan Commercial Bank, Ltd., Singapore Branch, Malayan Banking Berhad, Bahrain Branch, and The Bank of East Asia Limited, Singapore Branch.

Dr. Al-Wohaibi pointed out that these are leading banks at the local, regional and international levels. He praised the vital role played by Mashreq bank, being an important banking institution in the Middle East, in facilitating the credit facility in cooperation with Omani, regional and international banks.

A ceremony was held at Burj Al-Arab in Dubai to celebrate the conclusion of the successful syndication, and was attended by senior management officials from Omantel and the participating banks.

"Mashreqbank has firmly demonstrated their ability to manage and structure a financing facility that is attractive for Omantel as well as the participating financial institutions and we are delighted with the results,"

stated Talal Al-Mamari, Division Head of Finance of Omantel.

"Their combination of local understanding, coupled with international skills, capabilities and best practices reinforces their stature as one of the leading banks in the region".

Mashreq is among the largest financial institutions in the Middle East and is listed on the Dubai Financial Market. It has been associated with several landmark capital raising transactions in the GCC and the greater MENA region in recent months.