Tuesday, March 19, 2024 | Ramadan 8, 1445 H
scattered clouds
weather
OMAN
27°C / 27°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oman Oil Co owned Oxea concludes refinancing deal

1133715
1133715
minus
plus

MUSCAT, OCT 14 - Wholly Omani-owned Oxea, one of the world largest manufacturers of oxo chemicals, has announced the successful conclusion of a refinancing deal that promises to position the company for stronger growth going forward. Monheim am Rhein (Germany) headquartered Oxea, which is 100 per cent owned by Oman Oil Company — the energy and strategic investment arm of the Omani government — is a global manufacturer of oxo intermediates and oxo derivatives, such as industrial alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used in the manufacture of a wide range of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavourings and fragrances, printing inks and plastics.


A statement issued at the weekend said that Oxea successfully closed a €900 million euro equivalent ‘first lien term loan’ comprises a €475 million euro-denominated tranche and a $500 million dollar-denominated tranche, both due 2024. The new term loan extends Oxea’s debt maturity profile and reduces the overall cost of debt, said the company. At the same time, Oxea also inked an agreement for an upsized €137.5 million six-year revolving credit facility.


Oxea CEO Dr Salim al Huthaili said the term loan and revolving credit facility would help the company achieve its strategic business and growth objectives. “The successful refinancing reflects the success of our forward-thinking risk management and the support from our board. With sustained momentum in performance and continued support from our shareholder Oman Oil Company, we now have a clear runway and great flexibility to implement our strategy underpinned by innovation, growth, and optimisation. Oxea will continue to generate strong cash flows and is well positioned for the next phase of its growth,” he said.


The announcement comes on the heels of significant ratings upgrades declared by leading international credit ratings agencies in recent months. Standard & Poor’s revised its outlook for Oxea from stable to positive last month, while Moody’s changed its outlook from negative to positive — revisions that bode well for Oxea’s growth. The company has also benefited from a strong upturn in global demand for its oxo products in 2017.


Oxea’s network of plants, located in Germany, USA, China and the Netherlands, produces over 1.3 million tonnes per annum of oxo products that generate revenues of around $1.2 billion annually.


Oman Oil Company’s longer term vision is to utilise the Oxea platform to expand its chemicals portfolio over the coming years to evolve into one of the world’s leading chemicals companies. It seeks to achieve this by leveraging the Sultanate’s geographical proximity to competitive raw materials in the region, as well as its location as a gateway to the emerging markets of Asia.


Conrad Prabhu


SHARE ARTICLE
arrow up
home icon