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Tue 16 Jul 2019 02:21 PM

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Oman's Octal secures $625m financing to fund expansion

Packaging firm Octal plans to expand its capacity at the main plant in Salalah Free Zone

Oman's Octal secures $625m financing to fund expansion

Octal, the global supplier of clear rigid packaging materials, has secured $625 million of banking facilities in one of the biggest private sector financing deals in Oman of the last decade.

The deal comprises a syndicated term loan facility of $225 million and working capital facilities aggregating to $400 million, a statement said.

It added that the company plans to expand its capacity at the main plant in Salalah Free Zone, increase operational facilities, expand into new markets and develop research and development activities with the new funds.

The new term loan facility has been provided by seven local and international banks, consisting of Bank Muscat, BankDhofar, National Bank of Oman, Standard Chartered Bank, HSBC Bank Oman, National Bank of Bahrain and Bank ABC, with Bank Muscat – Investment Banking acting as the financial advisor for the deal.

The company said the facility was oversubscribed by almost 250 percent and will help it to further expand its patented PET Sheet business specifically in recycling technology, process technology, specialized industry segments such as poultry, dairy and food service packaging, with further geographical expansion into Latin America and Asia

Octal’s CEO, Nicholas Barakat, said: "We are pleased by our lenders’ support, and their confidence in the high-quality of our asset base, our strong operating performance and our plans to deliver value for all stakeholders. With this momentum, we have greater flexibility to implement our strategy, underpinned by innovation, growth, and optimization.”

Octal said it currently contributes approximately 6.5 percent to Oman’s non-oil exports.

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