September 30, 2017 | 11:54 AM by Times News Service

Bank Sohar signs deal to finance mega textile project in Sohar Free Zone

Muscat: Bank Sohar has been awarded the syndication mandate to fund SV Pittie Sohar Textiles (FZC) LLC’s cotton yarn manufacturing project planned within the Sohar Free Zone area.

The company belongs to the Shri Vallabh Pittie Group, which is planning to set up the project in 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 in progression.

On the successful completion of the first phase, Bank Sohar plans to syndicate a term debt for the second phase, said a bank release. The agreement was signed on September 22, together with the Sohar Port and Free Zone, at the office of the SVP Group in Jaipur, India, in the presence of dignitaries from both countries.

The Omani delegation was led by 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 Chief Executive Officer (CEO) Sasi Kumar and the project finance team. The signing ceremony included a land lease agreement and a loan facilities syndication agreement.

Commenting on the event, acting CEO 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 collaborating 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 accelerate 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, such as oil and gas, metals, mining and minerals, real estate, tourism, power, road, port, airport, railways and special economic zone (SEZs).

The project finance department will continue to innovate in 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 the construction and development of large projects. These include bilateral loans, guarantee facilities and letter of credit facilities.