Oman OCTAL, the world’s leading supplier of clear rigid packaging materials has secured one of the biggest private sector financing deals in Oman of the last decade. An amount of $625 million of banking facilities comprising of syndicated term loan facility of US$ 225 million and working capital facilities aggregating to US$ 400 million has been extended to the company by seven local and international banks.
The seven local and international banks are Bank Muscat SAOG, BankDhofar SAOG, National Bank of Oman, Standard Chartered Bank, HSBC Bank Oman SAOG, National Bank of Bahrain (NBB) and Bank ABC with Bank Muscat – investment banking acting as the financial advisor for the deal. Addleshaw Goddard Oman acted as the lenders’ legal counsel and OCTAL was advised by Al Busaidy, Mansoor Jamal & Co (AMJ). Bank Muscat is also acting as the documentation bank, facility agent, security agent and account bank for the transaction.
OCTAL’s chief executive officer Nicholas Barakat said, “We are pleased by our lenders’ support, and their confidence in the high-quality of our asset base, our strong operating performance and our plans to deliver value for all stakeholders. With this momentum, we have greater flexibility to implement our strategy, underpinned by innovation, growth, and optimisation.” He added, “With the extra capital, we aim to expand our PET sheet capacity at the main plant in Salalah Free Zone, increase operational facilities, continue to develop our research and development activities specifically involving the manufacture of PET converted packaging in the dairy and poultry industry, and support our growing customer base.”
OCTAL’s main product is its patented DPET sheet, which it developed and introduced to the market in 2008 as a cutting-edge alternative to the traditional PET sheet. The company is tapping into a global market size that currently stands at 59.3 million tons, offering a product that is fully recyclable, clear and transparent, and the first and only direct-to-sheet polyester sheet in the world. The unique technology eliminates five energy-intensive stages of the conventional sheet production process, meaning it offers an unmatched sustainability profile, while delivering the lowest carbon footprint compared to other PET sheet and the polymers for which DPET substitutes. DPET packaging is used for a broad spectrum of products such as trays, cups, blister-packs, IT hardware items, school and office supplies, and electronics.