| DUBAI, March 16
DUBAI, March 16 Omani sovereign wealth fund Oman
Investment Fund is about to complete syndication of a $600
million loan needed for the acquisition of the ministry of
finance’s shares in Oman Telecommunications Co
(Omantel), sources familiar with the situation said on Thursday.
The $600 million, five-year loan offers lenders a margin of
230 basis points over the London Interbank Offered Rate plus
bank fees starting at 60 bps over Libor for the highest level of
banks’ participation, the sources said.
Oman Investment Fund did not respond to an emailed request
Citi is leading the transaction, joined at a senior level by
Banca IMI, Kuwait Finance House and National Bank of Abu Dhabi.
The loan is in the final stages of syndication and should
close in coming days, the sources said.
The sovereign fund would use the money to back the
acquisition of a 51 percent stake in Omantel. A transfer of
shares from the ministry of finance to the fund was announced in
December last year.
The acquisition aims to improve efficiency and generate
higher profitability for the company, said a source close to the
matter. With the acquisition, the company would pass from an
“absentee landlord to an active landlord”.
Omantel posted profits of 116.7 million rials ($303 million)
in 2016, up from 48.5 million rials in 2015.
(Editing by Andrew Torchia)