Nama Group prepares to raise RO 453m in Tranche 3 of Lamar Project

Following the successful completion of Tranche 1 and 2 of its long-term fund raising programme – dubbed Project Lamar, Nama Group has commenced  preparations to launch Tranche 3 of the initiative by floating an open tender that is limited to  established local and international banking institutions for organising long-term funding to support the Capex programme of transmission and distribution companies.

The companies are Oman Electricity Transmission Company SAOC (OETC), Mazoon Electricity Company SAOC (MZEC), Muscat Electricity Distribution Company SAOC (MEDC), Majan Electricity Company SAOC (MJEC), Dhofar Power Company SAOC (DPC) and Rural Areas Electricity Company SAOC (RAECO).

The objective of the tender is to appoint a Mandated Lead Arranger (MLA) to raise an amount of RO 453 million approximately for a period 2019-2021. The funds raised by the long term funding arrangements would be utilized to meet the capital expenditure needs for expansion and enhancement of the transmission and distribution networks and refinance short term loans.

There are three phases under Tranche 3.  Phase 1 being the organising of Short Term Loans, Phase 2 being the “advisory” phase and Phase 3 being the “arrangement / implementation” phase, including the Hedging advisory and execution for the associated fund raising.

Nama Group is in its growth phase as it plays a very significant role in the development of nation’s economy. The Group has invested heavily in capital assets to expand and develop its networks and systems to satisfy the requirements and demands of the market. Availability of capital funding is critical to the successful achievement of Nama Group objectives. The Group has made significant progress in Lamar Project since its launch in 2014. Nama Group, led by Nama Holding, has successfully raised funds of RO 1.72 billion across various funding sources and tenors.

Diversification of sources, optimization of rates and hedging of the interest rates have helped the Group achieve its target financial cost metrics efficiently within their allowed price control returns, while meeting the electricity security standards.



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