Global PET packaging leader Octal is on course to complete the second phase of its operational expansion in 2011 after securing a new round of funding from six Middle Eastern banks. Phase two is planned to be commissioned from June 2012, and is expected to add 527,000 tpa of production, making Octal the world's largest producer of PET on one site and the largest PET manufacturer in the world.
Octal officials inked an agreement for US$296 mln in senior term loans from a financing group including Bank Muscat, Bank Dhofar, National Bank of Oman, Bank Sohar, Ahli Bank and Qatar National Bank. As per a release, Octal’s current shareholders Muscat Overseas and Oman & Emirates Investment Holding Co. also have agreed to provide a junior debt facility of US$15 mln.
Addressing attending dignitaries and media, Octal Chairman Sheikh Saad Suhail Bahwan said, "Today is another landmark for Octal and a proud moment for Oman. In less than five years, we have established a world-scale manufacturing complex and export operation in the Sultanate serving more than 40 countries, generating diversified growth for the local economy, and making a significant contribution to the development of Salalah Free Zone and the Port of Salalah."
Nicholas P. Barakat, Managing Director of Octal, said, "Despite the challenges of the global downturn, Octal has delivered on its promises and raised nearly US$400 mln in 2009 and 2010. The fact that the region's financial community is again investing in our business reflects their confidence in our operations and ability to realise ambitious growth. Securing project finance for a privately owned project of this scale is largely unprecedented in Oman. We are proud to have on board leading private and institutional investors from Oman and around the region."
18-Jan-11 
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