Global PET packaging leader OCTAL is on track to complete the second phase of its operational expansion this year following a new round of funding from six Middle Eastern banks.
The privately owned, Oman-based manufacturer opened a 400,000 metric ton (m/t) PET resins and sheet packaging facility in the southeast port city of Salalah in January 2009.
Phase two of the complex, which will be commissioned from June 2012, will add an additional 527,000 m/t of production, making OCTAL the world's largest producer of PET resins on one site and the largest PET manufacturer in the world.
OCTAL has secured a US$296mn senior term loan from a group comprising Bank Muscat, Bank Dhofar, National Bank of Oman, Bank Sohar, Ahli Bank and Qatar National Bank. Existing shareholders Muscat Overseas and Oman & Emirates Investment Holding Company have also agreed a junior debt facility of US$15mn.
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 million 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.”
