Banks target refinery work
A shortlist of banks has been drawn up for the financial advisory mandate on the merger of Oman Refinery Company (ORC) with Sohar Refinery Company (SRC). The selected institution will also advise on the refinancing of the company's outstanding debt of some $1,400 million.
Citigroup and HSBC are among the frontrunners, with an award expected imminently. SRC's outstanding debt, taken out in 2003 to fund the refinery's construction, comprises a $261.6 million tranche covered by Nippon Export Credit Agency (Nexi), a $261.9 million tranche from Japan Bank for International Co-operation (JBIC) and a $645.9 million, 14-year commercial loan (MEED 13:6:3).
Societe Generale recently arranged a repricing of the loan to a flat 65 basis points (bp) for the remainder of the term, down from 90-160 bp. The overall refinancing would be structured along more corporate lines: the Sohar refinery was commissioned earlier this year and crude is supplied by ORC.
ORC's debts are also likely to be refinanced. The company took out a $120 million, two-year loan in July arranged by four local banks (MEED 14:7:06).
www.meed.com/bankingfinance
A shortlist of banks has been drawn up for the financial advisory mandate on the merger of Oman Refinery Company (ORC) with Sohar Refinery Company (SRC). The selected institution will also advise on the refinancing of the company's outstanding debt of some $1,400 million.
Citigroup and HSBC are among the frontrunners, with an award expected imminently. SRC's outstanding debt, taken out in 2003 to fund the refinery's construction, comprises a $261.6 million tranche covered by Nippon Export Credit Agency (Nexi), a $261.9 million tranche from Japan Bank for International Co-operation (JBIC) and a $645.9 million, 14-year commercial loan (MEED 13:6:3). Societe Generale recently arranged a repricing of the loan to a flat 65 basis points (bp) for the remainder of the term, down from 90-160 bp. The overall refinancing would be structured along more corporate lines: the Sohar refinery was commissioned earlier this year and crude is supplied by ORC. ORC's debts are also likely to be refinanced. The company took out a $120 million, two-year loan in July arranged by four local banks (MEED 14:7:06). www.meed.com/bankingfinanceThis content is only available to full MEED package subscribers (MEED magazine and MEED.com).
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