Banking & Finance
Bank Muscat closes $ 650 million Club Loan Facility

Bank Muscat, the flagship financial services provider in the Sultanate of Oman, has successfully closed a senior unsecured loan facility of $650 million with a consortium of 20 relationship banks from across the globe.
The transaction originally launched for $ 500 million, received commitments of over $ 1.2 billion. The transaction received overwhelming support from the international banking community and was supported by 20 lenders from the GCC, Europe, USA, Asia and Africa. In view of the oversubscription, Bank Muscat decided to scale the facility up to US$ 650 million. The loan facility was closed at favorable financing terms showing a healthy appetite for the bank’s fundraising activities. The facility, which has a 3-year tenor, will be used to refinance the Bank’s existing loan as well as project financing and general corporate financing.
Sheikh Waleed K. Al Hashar, Chief Executive Officer, Bank Muscat, said: “The successful closure of this Club Loan reflects the Sultanate’s growth-oriented economic outlook as well as the confidence of international banks in the country and in Bank Muscat’s strong financials. We value the strong support from our international partners resulting in approximately 2.5 times oversubscription, which further compliments our reputation and brand as a leading bank in the Middle East.”
The senior unsecured loan was facilitated through the bank’s Wholesale Banking Group (WBG) which specialises in fund raising for the Bank (conventional and Islamic) as well as other financial institutions across the emerging markets. The WBG team brings a focused approach to fund raising, delivering tailored funding solutions for the benefit of its clients.
Abdullah Zahran Al Hinai, Chief Wholesale Banking and Strategic Growth Officer, said: “The successful closure of the Bank Muscat 2020 Club Loan is a testament to the credentials of Oman and Bank Muscat. Despite the various macroeconomic challenges in the region, this transaction is further proof of our valued partners’ confidence in Bank Muscat. We are immensely pleased to welcome all the lenders who joined the facility and look forward to enhancing relationships with all the participant banks.”
The Arab Banking Corporation, Commerzbank, First Abu Dhabi Bank, Mashreq Bank, Mizuho Bank and Wells Fargo acted as the Joint Lead Co-Ordinators as well as Mandated Lead Arranger and Bookrunners. Abu Dhabi Commercial Bank, Citibank, Credit Europe Bank, Emirates NBD, Gulf International Bank, HSBC Middle East, MUFG Bank, National Bank of Bahrain, National Bank of Ras Al Khaimah, Standard Chartered Bank, State Bank of India-WBB Bahrain and Sumitomo Mitsui Banking Corporation were Book Runners and Mandated Lead Arrangers. Banque Misr and Landesbank Baden-Württemberg participated as Lead Arrangers. First Abu Dhabi Bank is the Agent Bank for the facility.
Bank Muscat, which has the largest banking network in Oman covering retail, corporate, wholesale and Islamic banking operations, has been a keen participant in the growth and development of the Sultanate over the last three decades. As a multiple award-winning financial institution, Bank Muscat is also well known for pioneering financial and non-financial support for small and medium-sized businesses in Oman. The Bank’s international operations include a branch each in Saudi Arabia and Kuwait as well as representative offices in Dubai and Singapore, which focus on financial institutions and global trade.
Bank Muscat posted a net profit of RO 185.55 million for the year 2019 compared to RO 179.63 million reported during the same period in 2018, an increase of 3.3 per cent. The Bank has consistently demonstrated strength and stability in financials, ownership and management and is the only Domestic Systemically Important Bank (D-SIB) in Oman.
-
Banking & Finance2 months ago
National Finance Reinforces Position as Partner for Growth, Offers a Comprehensive Product Suite to Support Customer Ambitions
-
OER Magazines1 month ago
OER, July 25
-
Alamaliktistaad Magazines1 month ago
Al-Iktisaad, July 25
-
Education2 months ago
Russia offers diverse tourism and education opportunities: Sofia Malyavina
-
Digital2 months ago
Russia’s Digital Frontier: An Inside Look with Alexey Goreslavsky of IRI
-
News1 month ago
OpenAI Strengthens ChatGPT’s Mental Health Safeguards Ahead of GPT-5 Launch
-
Banking & Finance2 months ago
Sohar International Partners as Main Sponsor for Refill 3, a Culinary and Cultural Festival Driving Tourism in Khareef Dhofar
-
Energy2 months ago
Oman Investment Authority launches the Sultanate’s First Energy Transition Fund