BankDhofar lead arranges $175m project finance for Raysut Cement

The facility was structured as a medium term loan and the deal was won by the BankDhofar led consortium in the face of stiff competition from other local and regional banks. The terms of the facility were carefully crafted to meet the special needs of the Company. The other banks participating in the syndicate are: BNP Paribas, Arab Banking Corporation and BBK. The acquisition of Pioneer Cement Company has been completed before the end of 2010 and the plant has a production capacity of 1.6 Million tonnes per year which added to Raysut's present capacity of 3 Million tonnes per year makes it one of the leading players in the GCC region.

Commenting on the financing, Mr Kris Babicci, CEO BankDhofar emphasized that "This deal showcases our ability to arrange large ticket financing and signifies an important step in the evolution of the Bank." He added "The important feature of this financing was the speed with which BankDhofar arranged the funding to meet the deadline of the client. We have evolved from being a participant in syndicated transactions to the level of a Lead Arranger in this deal. We look forward to more transactions in the future. We have a wonderful working relationship with regional and international banks and we are confident of arranging financing requirements. Our Project Finance and Syndications team has the depth to structure tailor made solutions to meet the requirements of clients."

Mr. Kamal Hassan Al Murazza, Deputy General Manager, Wholesale Banking added,
"This milestone is another testimony of BankDhofar's capacity to take an active part in the development of the country's economy, especially that the regulatory and business environment is facilitating the realization of large projects and setting up a solid platform for further transactions of such complex nature to transpire in the future."

With this acquisition, Raysut Cement has emerged as a dominant entity not only in Oman but also in the region. The acquisition offers synergistic benefits to the Company which will translate into improved profitability in the medium term. Pioneer Cement is now a wholly owned subsidiary of Raysut Cement.