Oman-based OQ Gas Networks (OQGN) has signed three financing agreements worth $1.2 billion with 16 local and regional banks.

Oman Arab Bank, a major financial group in the sultanate, is the only Omani bank among the lead arrangers, that has been signed up for the syndicated loan.

Oman Arab Bank said in a statement that “it had showcased its expertise, strong relationships, and unwavering commitment to its clients and proved its ability to undertake such complex and large corporate deals.”

“We are honored to have been appointed as a strategic financial partner for OQGN, as they pursue their ambitions and robust growth strategy. Combining their vision with our financial expertise, we aim to facilitate their journey towards becoming a crucial infrastructure player in the country. We will continue to leverage our extensive resources, industry knowledge, and financial solutions to provide the necessary support to OQGN. The oversubscription of the syndicated loan facility underscores our strong reputation and expertise in structuring such financing arrangements. The syndicated loan not only reflects the confidence of the financial community in OQGN’s potential but also serves as a testament to OAB’s capabilities in providing tailored financing solutions and leading large-scale transactions.”

This financing move is considered one of the largest syndicates of sharia-compliant financing in Oman, providing the company with access to capital in dual currencies (RO225 million and $620 million) to support its ongoing corporate activities and refinancing requirements.

On the agreements, OQGN Vice President of Finance Mr. Khalid Al Qassabi stated that these terms were agreed to be compliant with sharia financing rules and it was in the process of certifying them with local and regional sharia boards.

Mr. Sulaiman Al Hinai, Head of Wholesale Banking, commented that, “Oman Arab Bank continues to be the partner of choice for numerous key socio-economic projects, enabling the growth and progress of the nation in developmental, economic and urban fields, all the while contributing to the evolving financial system.”