News Column

Electricity Holding Company plans to raise OMR800m

June 24, 2014


Muscat:Electricity Holding Company (EHC), the holding firm of all electricity firms in Oman, is planning to raise OMR800 million by way of a syndicated loan or bond issue from within the country and outside, the company's chief executive officer Omar bin Khalfan Al Wahaibi, told the Times of Oman.

The fund, which will be raised after getting advice from its financial advisors within two to three months, will be used for meeting the capital expenditure for developing transmission and distribution systems of its subsidiary companies.

Al Wahabi said currently, the EHC is using a lot of short-term facilities from financial institutions. "Also, we are working on structuring long-term funding facilities for the group in general. We are open to the possibilities of loan or bonds and are looking at both options," he said, on the sidelines of a media conference to announce the company's forthcoming knowledge sharing conference in November.

"Hopefully, within the next couple of months we will have a direction on this. And the fund will be raised at any time between then and the middle of next year."

The EHC has appointed Bank Muscat and J P Morgan to conduct a study on the best instruments for raising funds.

Al Wahaibi said that the electricity distribution companies have already submitted their investment proposals to the regulator and the regulator is reviewing these proposals.

"Hopefully, before the end of the year, we will have a concrete plan on investment," he added.

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Source: Times of Oman

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