Muscat-based government entity, Oman Electricity Transmission Company (OETC) has attracted investor interest by offering bonds worth $600 million, due in February 2031, at an interest rate of 5.8 percent.
The company said in a statement that this is the first Government Related Entity (GRE) issuance out of Oman since 2018 and it marks OETC’s return to the capital markets after a brief interval of about 4 years.
The offering benefited from an increase in investor sentiment towards the sultanate, further highlighting the strategic value of Oman’s electricity holding company NAMA Holding, its affiliate companies, partners in international money markets, and investors.
Asian, European, and American investors have shown a strong desire to participate in the offer of the company, with more than 83 percent of the record of purchase orders that have been received. The well-diversified allocation of orders across these regions is testimony to the strength of the OETC’s credit profile, as well as the excellent teamwork that the Debt Management Office (DMO) at Ministry of Finance and the NAMA, OETC, and State Grid International Development (SGID) put together.
The company stated that the proceeds of the offering will be used, “To finance some of the current loans, finance the company’s capital spending program, and implement infrastructure development plans in the Sultanate.”
OETC is authorized to carry out all regulated activities of electricity transmission and dispatch in northern Oman and Dhofar at voltages of 400kV, 220kV, and 132kV. One of the major OETC capital expenditure programs is the implementation of the first phase of the 400kV North-South Interconnector project.