Oman’s Electricity Holding Company (EHC) is finalising two loans to Dhofar Power Company (DPC) and Majan Electricity Company (MJEC), totalling about $600m.

DPC secured a $230m syndicated loan from international banks and RO15m ($39m) in working capital from local banks in mid-May.

Earlier in 2016, MJEC secured a $330m syndicated loan.

Both dollar-denominated loans were oversubscribed, and priced at about 325 basis points over the London interbank offered rate (Libor), according to one banking source.

EHC was seeking a ten-year tenor with an amortising structure, it told UK news agency Reuters in February 2016.

EHC has now completed a series of structured finance transactions on behalf of its subsidiaries, thought to total more than $2.7bn.

Mazoon Electricity Company (MEC), Muscat Electricity Distribution Company (MEDC) and Oman Electricity Transmission Company (OETC) all sought longer-term funding under a mandate for US-based JPMorgan and the local Bank Muscat’s investment arm to raise about $2.1bn, signed in 2014.

About $1bn of this took the form of an international bond issued by OETC in 2015, which was the first corporate transaction of this type for Oman.

US-based Moody’s Investors Service downgraded Oman’s utility providers in May. OETC is now rated at Baa1 stable, and MJEC, MEC, MEDC and DPC at Baa2 stable.

This follows a sovereign downgrade of the sultanate by Moody’s to Baa1 stable as low oil prices affect government revenues and the net fiscal position.

This, combined with lower banking sector liquidity, is making borrowing more expensive for Omani entities.