September 30, 2017

Bank Sohar Inks Deal To Finance Mega Textile Project In Sohar Free Zone

JAIPUR - Bank Sohar has been awarded the syndication mandate to fund SV Pittie Sohar Textiles (FZC) LLC’s Cotton Yarn manufacturing project planned for Sohar Free Zone.

The company belongs to the reputed Shri Vallabh Pittie Group, which is planning to set up the project at Sohar in two phases, each comprising a capacity of 150,000 spindles and 3,500 rotors with a mandate to syndicate the entire Phase-I and Phase-II debt is in progression. On successful completion of Phase-I, Bank Sohar plans to syndicate a Term Debt for Phase-2.

The agreement was signed on September 22, together with Sohar Port and Free Zone, at the office of SVP Group in Jaipur, India, in the presence of dignitaries from both countries.

The Omani delegation was led by HE Sultan Bin Salem al Habsi, chairman of the Sohar Port and Free Zone (SPFZ), the implementing authority for the project.

The delegation from Bank Sohar included the Bank’s chairman Abdullah Humaid Said al Ma’amary, acting CEO of Bank Sohar, Sasi Kumar and the project finance team. The signing ceremony included a land lease agreement and a loan facilities syndication agreement, a press release said.

Commenting on the event, Kumar said: “We are honoured to be the financing partner for a project of this magnitude which is expected to have a huge developmental impact on the country. It signifies another extraordinary accomplishment by the bank, which demonstrates our commitment to collaborate on new projects that support the Sultanate’s economy and contribute to its growth and diversification.

Over the years, Bank Sohar has strongly established itself as a dependable project lender and we have financed various projects nationwide to fast track the development and progress of the nation and ultimately accelerating the GDP growth.” Bank Sohar enjoys strong loyalty among investors, which is a testament to its dedication, quality, customised products and services. The dedicated Project Finance Department of the bank possesses strong capabilities in structuring, appraising, and syndicating projects related to various key sectors like oil and gas, metals, mining and minerals, real estate, tourism, power, road, port, airport, railways, Special Economic Zone (SEZs), and more.

In line with His Majesty Sultan Qaboos bin Said’s directions on diversification of the economy, Bank Sohar aspires to diversify its focus on structured deals of project finance to the emerging businesses outside the conventional oil and gas based economy. The Project Finance Department shall continue to innovate on funding structures and financing solutions to cater to the evolving investment scenarios of Projects and Infrastructure in the Sultanate. Apart from syndicated loans, the bank also offers a comprehensive bundle of project finance facilities for construction and development of large projects. These include bilateral loans, guarantee facilities and letter of credit facilities.