Oman’s Electricity Holding Company (EHC) has appointed the local Bank Muscat and the US’ JP Morgan as joint financial advisers and lead arrangers for a debt raising of RO800m ($2.1bn).

Omar al-Wahaibi, CEO of EHC, said at the signing of the agreement in Muscat on 10 July that the firms had been appointed to advise EHC and raise long-term financing to support the company’s capital expenditure to improve and expand the sultanate’s transmission and distribution network. The firms will also assist with the refinancing of EHC’s existing short-term borrowings.

“The report from our advisers is expected in the coming months and the funds raised will be utilised to support our subsidiaries’ investment plans,” said Al-Wahaibi.

EHC is part of Electricity Holding Group (EHG), a group of 10 joint stock companies created as a result of a restructuring of the electricity sector and water services in 2004. The group also includes the local Mazoon Electricity Company, Muscat Electricity Distribution Company (MEDC) and Oman Electricity Transmission Company.

EHC recently announced it was planning to float a tender for a strategic study for the privatisation of MEDC, a subsidiary of EHC.

The purpose of the study is to investigate privatisation options and to assess the readiness of MEDC for privatisation. The study is being launched under the directives of the Finance Ministry and the Public Authority for Electricity & Water (PAEW).