Oman-based Mazoon Electricity Company (MZEC), a subsidiary of Nama Holding, has announced the signing of its debut Islamic financing facility for $235 million.
The proceeds will be used to finance the capital expenditure plans of MZEC for 2021 mainly comprising investments in the electricity distribution and supply network in its licence areas in Oman.
The facility is structured as a two-year Ijarah bridge facility marking the first Islamic bank facility for Nama Group, a statement said.
It added that the facility received interest from regional banks of Bahrain, Kuwait and the UAE with 12 financiers participating in the facility and an oversubscribed order book.
National Bank of Bahrain (NBB) and its subsidiary Bahrain Islamic Bank acted as the structuring, arranging and bookrunning banks on the facility.
“The inaugural Islamic financing facility is a milestone transaction for Mazoon Electricity, adding new banking relationships to the group and providing it access to Islamic financiers of the region to fund the investment in electricity distribution infrastructure of the Sultanate”, said Salim Said Al Kamyani, CEO of Mazoon Electricity.
Mazoon Electricity is owned by the Government of Oman through its holding company for the electricity and water sector, Nama Holding.
Established in 2005, it holds the monopoly and exclusive licence to distribute and supply electricity in Al Dakhliya, South Al Sharqiya, North Al Sharqiya, and South Al Batinah regions, in addition to Suwaiq city in North Al Batinah region.
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