Renaissance has concluded a US $67.6 million syndicated finance facility with Bank Dhofar, Bank Sohar and Oman Arab Bank. The syndicated credit facility is arranged by Oman Arab Bank and the facility is equally shared by the three banks. These funds will be invested by Renaissance in its expansion projects in Oman.
Recently Renaissance has been awarded contracts by Petroleum Development of Oman (PDO) to build, own and operate PAC facilities in the Sultanate's interior oilfields at Marmul and Bahja. Renaissance has a recognized track record in delivering strong returns from long-term projects of this kind in Oman and abroad.
Local banks have recognized this strength in the Renaissance business model and have structured the terms of the facility accordingly. Considering the current global shortage of liquidity for long term project funding, Renaissance has secured the most reasonable terms and competitive pricing for this 10-year facility.
In the last two years Renaissance has invested more than US $400 million in capital projects and has secured appropriate long term funding sources to support this. The recent third quarter interim statement issued by Renaissance highlighted the company's efficient capital structure and the strength of its business model with secure long term projects in the oil & gas industry that have secured earnings and operating cash flows for the group for future years. This new facility serves to underwrite the current growth plans of the group.
The financial closure of this new US $67.6 million facility, in such a challenging global financial market, emphasizes the robust health of the banking system in Oman and is a strong vote of confidence in Renaissance and its long-term projects.
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