OSC to get loan to buy 4 VLOCs

Oman Shipping Company (OSC) this week signed an agreement with Bank Muscat and Bank Dhofar for a 137 million-rial loan to buy four very large ore carriers (VLOCs).

OSC had mandated Bank Muscat to arrange the debt financing facility to part-finance the acquisition of four VLOCs, which are the largest dry cargo vessels in the world with 400,000 dwt capacity each, the company said in a press release.

Bank Muscat, which is the mandated lead arranger, security agent and facility agent for the financing facility, will contribute 107 million rials while Bank Dhofar will provide
30 million rials. The financing facility is for a tenor of 12 years to be repaid in semi-annual instalments.

The new VLOCs are chartered to Vale International for 20 years. Vale has iron ore pelletising facilities at Sohar Port with a capacity to handle 9 million tonnes per year for exports to the Indian subcontinent and South Asian countries. Oman Ship Management Company, a subsidiary of OSC, is responsible for the management of the four VLOCs based in Muscat.

HE Dr Ahmed Bin Mohammed Bin Salim Al Futaisi, Minister of Transport and Communications and deputy chairman of Oman Shipping Company, Tariq Bin Mohammed Bin Sultan Al Junaidi, acting CEO of Oman Shipping Company, AbdulRazak Ali Issa, CEO of Bank Muscat, and Abdul Hakeem Omar Al Ojaili, acting CEO of Bank Dhofar, signed the financing agreement.

Futaisi said: “The financing agreement comes within the scope of OSC’s strategy to broaden relations with local partners to achieve the highest value for the national economy through the provision of shipping services to business partners in and outside the Sultanate. The agreement is a clear indication of the availability of viable financing facilities in Oman without the need to depend on external financing for major projects such as the acquisition of VLOCs which will contribute significantly to the growth of the company and implementation of its business plans.”

AbdulRazak Ali Issa said: “Bank Muscat is grateful to the Government of Oman and the management of OSC for the confidence in the bank. Bank Muscat is focused on playing a prominent supportive role in projects that are of national importance and this association with OSC will further strengthen this approach.”
Source: Oman Tribune