Dedicated to driving sustainable growth in the Sultanate, Sohar International has been at the forefront of supporting key national projects that add value to the economic landscape. In line with the same, the bank participated at the official opening ceremony of Sanvira Carbon FZC LLC (SCL) – a large-scale manufacturing project for which Sohar International and Sohar Islamic are the financing partners.
The inauguration of the factory, which is located at Sohar Port and Freezone, was held under the patronage of H.E. Salim bin Nasser bin Said Al Aufi, Minister of Oil and Gas. Representing the bank at the inauguration was Mr. Abdul Wahid Al Murshidi, Chief Islamic Banking Officer, Sohar International, along with other senior members from the bank. The milestone opening ceremony also witnessed the presence of several business leaders associated with the project, key government delegates, and representatives from the media.
Mr. Ahmed Al Musalmi, Chief Executive Officer of Sohar International commented, “Sohar International is committed to supporting mega national projects that contribute to the Sultanate’s economic development and diversification while simultaneously boosting the country’s energy independence, self-reliance, and resilience. Such projects are not just critical to the development of manufacturing industries, but also have the potential to strengthen the local communities by generating new job opportunities, creating in country value and new value chains. The support to this project is a reflection of the bank’s alignment with Oman Vision 2040 and reiterates our determination to take concrete steps to achieve integrated development in the country.”
Sanvira Carbon was incorporated in December 2018, to set up, own, and operate a Calcined Petroleum Coke (CPC) manufacturing facility in Sohar in the Sultanate of Oman, with an effective aggregate capacity of 440,000 metric tonnes per annum and was geared at bridging the value chain manufacturing gap between the availability of Green Petroleum Coke (GPC) in ORPIC’s Oil Refinery and the requirements for CPC at Sohar Aluminium, both of which operate in Sohar. The total cost of the project, estimated at USD 155.90 million, was to be financed by equity of USD 51.45 million and term loan of USD 104.45 million while maintaining a Debt Equity Ratio (DER) of 67:33 (~2:1). As the trusted finance partners of the project, Sohar International had split the term loan facility between conventional and Islamic tranches of USD 83.66 million and USD 20.79 million, respectively.
Sanvira Carbon had already commenced operations of its Vertical Shaft Kiln unit in January 2022, thereby, earning cash accruals of approximately USD 15 million by September 2022. The company is also already supplying finished CPC to Sohar Aluminium and BP Europa, along with high-grade sulphur GPC under a 3-year supply contract to OQ Refineries. Given its strategic location and proximity to the port, the company also has the scope to capture the regional aluminium smelter market in Qatar, Saudi Arabia, and Africa.
As a progressive, agile, and dynamic bank, Sohar International, through its thoughtfully crafted product and service offerings, has been driving socio-economic progress in the Sultanate and will continue to finance projects that have a long-term, positive impact.