Bank Muscat and India’s industrial conglomerate Jindal Group marked a celebration in New Delhi to commemorate the successful financial closure of US$725mn facility for Jindal Shadeed Iron & Steel.
The ceremony coincided with the visit to India of a high-level Omani business delegation led by H E Dr Ali al Sunaidi, Minister of Commerce and Industry, along with representatives from various public and private sector companies, as part of the B2B Oman-India roadshow.
In June this year, Bank Muscat arranged the US$725mn syndicated term loan facility for Jindal Shadeed Iron & Steel. The facility was arranged by Bank Muscat together with a consortium of 11 banks.
The consortium comprising banks from Oman, other Gulf countries and India included Bank Muscat, Qatar National Bank SAQ; Qatar National Bank, Oman; National Bank of Oman; Al Khaliji Commercial Bank; BankDhofar; Bank Sohar; Ahli Bank Bahrain; Ahlibank Oman; State Bank of India, Dubai and State Bank of India, Oman.
The facility was oversubscribed with commitments in excess of US$855mn received as against the required commitment of US$725mn. The entire facility was structured and arranged by Bank Muscat, which was also mandated as the facility agent, account bank and security agent for the facility.
AbdulRazak Ali Issa, chief executive of Bank Muscat, thanked the consortium banks for the successful financial closure of the facility. Issa said, “Oman has always facilitated a conducive environment for overseas investors, including Indian investors, to set up projects in the country and this has played a pivotal role in helping Oman to achieve its Vision 2020 economic objective of diversifying from oil as a major source of income to other allied activities such as metals, downstream oil and gas etc.”
Naveen Jindal, chairman of Jindal Steel & Power Ltd (JSPL), said, “We are committed to building a comprehensive steel manufacturing facility in the sultanate. Huge infrastructure spending in the Middle East is driving a strong demand for steel and fuelling investment in steel projects. We see great synergy in this tie-up with Bank Muscat which will help us drive our expansion projects in Oman.”