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Oman Telecommunications Company (Omantel) today signed a US$205 million facility agreement with a consortium of 15 Omani, Regional and international banks to finance the acquisition of a 65% majority stake in the Pakistani Telecom Company of "World Call".

Mashreq Bank, a leading bank of the UAE, the mandated lead arranger, has successfully closed the general syndication of the financing facility. The deal represents a debut debt offering for the largest telecom operator in the Sultanate of Oman. Dr. Mohammed Bin Ali Al-Wohaibi, the CEO of Omantel said that this deal constitutes a fresh step of the company in looking to the international financial markets for its external investments in the telecom sector. He stated that this move would expand the company's investment base not only in the Sultanate but also at regional and international levels.

Dr. Al-Wohaibi indicated that Omantel is moving ahead with its strategy of further investment in telecommunications and IT market. It has therefore formulated plans to enter into investment partnerships with various IT and telecom companies.

The following institutions made up of local, regional and international banks participated in the syndication of the loan - Mashreq bank, KFW IPEX-Bank GmbH, National Bank of Oman S.A.O.G., Oman International Bank S.A.O.G., Bank Sohar S.A.O.G., Commerzbank Aktiengesellschaft, Fortis Bank S.A./N.V., Lloyds TSB Bank Plc, Bank of Taiwan Singapore Branch, Banque Bia, Chinatrust Commercial Bank Co., Ltd., First Gulf Bank,  Hua Nan Commercial Bank Ltd. Singapore Branch, Malayan Banking Berhad Bahrain Branch, and The Bank of East Asia Limited Singapore Branch.

Dr. Al-Wohaibi noted that participation of the consortium in the financing of Omantel acquisition is a strong indication of the great role of Omantel amongst other telecom companies in the Arab Gulf region on the one hand and a clear proof of the strength and good reputation of the Omani economy on the other.

Dr. Al-Wohaibi pointed out that the participating banks were leading banks at the local, regional and international levels. He had a special word of praise for Mashreq Bank for being a pioneer banking institution in the Middle East  and for the vital role played by them in facilitating the financing of this World Call credit facility with other banks. Dr. Al-Wohaibi said, "This in itself shows the trust of the banks in Omantel's credit worthiness."

He pointed out that Omantel is looking forward to achieving more cooperation with banking institutions to support future investments in telecom sector. He added that Omantel is exerting every effort to make its investment in the Pakistani market a success.  The investment climate is conducive in general in the telecom sector and therefore it was anticipated that expected income would be realized from this investment.

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