By A Staff Reporter — MUSCAT — Oman Trading International Ltd (OTI), the joint venture between Vitol Holding and Oman Oil Company SAOC (OOC), has announced that it closed the renewal and increase of its one-year borrowing base facility last week.
The facility has been increased from $300 million to $480 million, said Amer al Jabri, OTI’s Finance Director.
The Club Deal facility is made up of Natixis, Rabobank International and Standard Chartered Bank acting as co-MLAs and is granted to OTI Dubai and OTI Singapore. Natixis acts as Facility Agent, Security Agent & Ovedraft Bank whereas Rabobank International acts as Issuing Bank for OTI Dubai and OTI Singapore & Coordinating Bank for OTI Singapore and Standard Chartered Bank acts as Documentation Agent.
The facility allows for the issuance of LC, the financing of prepayments, stock financing, margin financing and receivable financing (among others) with the appropriate sub-limits.
“It is a landmark transaction and one of the first and largest facilities of this kind in the region. This demonstrates the capacity of OTI to raise funds from international commodity finance banks,” Oman Oil Company’s trading arm said in a statement.
Al Jabri added, “This facility is sized to accommodate the strong developments of OTI in the international oil markets.”
OTI was launched in 2006 with a much sought after network of connections and contacts; valuable relationships within Oman and the Middle East, alongside a proven worldwide marketing framework. Since then, the company has grown quickly with offices in the Middle East and Asia and plans to open further offices in Europe and the US.
OTI is fast becoming a fully fledged trading entity with access to all necessary trading tools, adding value to all stakeholders. In addition to products sourced from Oman, the company is building sufficient expertise and trading opportunities that would allow it to utilise products regionally and internationally.
OTI is one of the major players in the Oman crude oil market, and has vast experience in trading petroleum products and petrochemicals in regional and international markets.