Investor confidence: Successful investment marks return of OETC to capital markets
MUSCAT: Oman Electricity Transmission Company (OETC), a subsidiary of Nama Group, says its $600 million bond offering has been well-received by international investors. The Senior Unsecured Notes, due in February 2031, were offered with an interest rate of 5.8 per cent.
The offering is the first by a government-linked entity outside Oman since 2018 and marks the return of OETC to the capital markets after a four-year hiatus, benefiting from improved investors’ desire to invest in Oman, which reinforces the strategic importance of Nama Holding Group, Oman’s subsidiaries, international capital markets and investors alike, it said in a statement.
“Oman Electricity Transmission Company succeeded in attracting investor interest in its offering, and investor confidence was further boosted by the strategic diversification of Nama Group
for Oman Electricity Transmission Company, which paved the way for the company to become a 49 per cent partner in the company,” it said.
Investors from Asia, Europe and America have shown a clear willingness to participate in OETC’s offering of more than 83 per cent of the record of purchase orders received.
The diverse allocation of orders from the region demonstrates the strength of OETC’s credit position and also demonstrates the hard work of the team in the Loan Department of the Ministry of Finance and the team of State Grid International Development, it further stated.
The $600 million international offering will be used to finance some existing loans, including a
shareholder loan to OETC from Nama Group, State Grid International Development and capital expenditure financing at OETC, thereby allowing the company to implement infrastructure development plans in Oman.
Among the main spending programmes undertaken by OETC, the implementation of the first phase of
the 400 kV electricity grid interconnection project, and the extension and integration of the grid will be of great benefit to the Sultanate due to the significant fuel savings, coordination and the expected improvement in loads between different energy systems with access to new areas with renewable energy projects and the participation of available reserves.
This in turn will reduce the operating cost of the company. The returns are also expected to support the efforts of OETC to implement the 400 kV backbone, which aims to connect a 1,000 MW solar power planned by 2024 and 2025.
“OETC’s offering has attracted the attention of international bond investors, particularly those looking for high-quality assets to invest in, and demonstrates the company’s ability to attract $4.5 billion in investment demands, at a time when the financial markets are struggling with the strength of Nama Group and State Grid International Development and the good credit position of OETC and also demonstrates strong demand for sovereign issues in Oman and its subsidiaries,” it added. — ONA
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