OPP financing mandate award nears

01 August 2003
After submitting bids in mid-July, three banks were invited back on 27 July to discuss the proposed financing needs of Oman Polypropylene (OPP). OPP originally shortlisted five banks interested in the financial advisory mandate in January but the deal was postponed (MEED 30:1:03).

It is understood that the three banks are Arab Petroleum Investments Corporation (Apicorp), BNP Paribasand Gulf International Bank.

'It looks likely that, rather than being just a straight advisory mandate, this has evolved into an advisory and underwriting position,' says one of the bidders. The total debt requirement for the proposed plant is expected to be about $170 million (MEED 13:6:03).

As OPP is taking its feedstock from Sohar Refinery Company, which is itself close to launching its commercial debt package to syndication (see below), bankers are expecting a quick decision on the award of the OPP mandate.

OPP is a joint venture between Oman Oil Company, which has a 60 per cent stake, and South Korea's LG Internationaland The Hague office of ABB Lummus Global, with 20 per cent each. The plant, scheduled for completion in 2006, is expected to cost $200 million-250 million and will have capacity of 340,000 tonnes a year of various grades of polypropylene (MEED 6:12:02).

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