Nawras secures US$220 million start-up funding
Consortium of regional and Omani banks new mobile operator

The Omani-Qatari Telecommunications Company SAOC (“Nawras”) has announced that it has signed US$ 220m bank facilities for its startup operations. The seven year amortizing loan will be provided by a consortium of lenders consisting of Nawras’ strategic regional and local Omani relationship banks led by Qatar National Bank. The deal was arranged by Nawras’ major shareholder, QTEL, with Qatar National Bank acting as the Borrower’s Financial Adviser. The Mandated Lead Arrangers for this milestone transaction are Gulf International Bank, Qatar National Bank, Arab Bank and Bank Muscat. In addition, Oman Arab Bank will be participating in the facility through its parent, Arab Bank. Bank Muscat will be acting as the Security Agent and Account Bank, while Qatar National Bank will act as the Facility Agent.

“I am delighted that this major lending arrangement has been secured.” said Ross Cormack, Chief Executive Officer of Nawras. “It is very encouraging to know that Nawras with its ambitions plans has won the confidence of these major local and regional banks.” he said. This transaction marks yet another successful local partnership and investment contribution made in Oman by Nawras, which is due to launch its’ services on 16 March.

He added “A financial injection of this magnitude firmly underlines our commitment to both the Omani market and our stakeholders, and the fact that such leading banks are supporting this exciting new mobile service venture underlines the confidence shown in Nawras even before we have officially launched.”

“The funding will ensure we are in a sound position to deliver on our promises of providing a rapid expansion of our mobile network across the Sultanate, allowing us to provide all Omanis with great value, easy-to-use mobile telephony services.”

Nawras has undergone a fast track launch phase, underpinned by a strong commitment to customer focus. The second Omani mobile telephone licence was awarded to Nawras in June 2004, following one of the world’s most hotly contested competitions ever held in the telecommunications sector with 28 consortia competing for the licence.

With its corporate vision of enriching the lives of people in Oman through better communication Nawras is striving to become the communications provider and employer of choice in Oman. In line with the mission, Nawras had by end 2004 already hired 230 employees of whom over 70% are Omani nationals.

Dr Nasser Marafih, the CEO of Qtel and Board Director of Nawras confirmed that he was very pleased that they had been able to secure such a good financing facility for Nawras that builds on the new venture’s already solid financial position. He further said “it has clearly been beneficial being able to use the financial strength of Qtel in negotiating and agreeing the best mutually beneficial terms with the lending consortium and we are highly appreciative of their confidence and support”.

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