Octal, a leading supplier of clear rigid packaging materials, has secured $625 million of banking facilities comprising of syndicated term loan facility of US$ 225 million and working capital facilities aggregating to US$ 400 million in one of the biggest private sector financing deals in Oman of the last decade. The new term loan facility has been provided by seven local and international banks, consisting of Bank Muscat SAOG, BankDhofar SAOG, National Bank of Oman, Standard Chartered Bank, HSBC Bank Oman SAOG, National Bank of Bahrain (NBB) and Bank ABC with Bank Muscat – Investment Banking acting as the Financial Advisor for the deal. Bank Muscat is also acting as the Documentation Bank, Facility Agent, Security Agent and Account Bank for the transaction.
In a strong vote of confidence in Octal’s future, the Facility was oversubscribed by almost 250% and will continue to set Octal for stronger and rapid growth. The company’s strategy as the leading manufacturer of PET materials is to further expand its patented PET sheet business specifically in recycling technology, process technology, specialized industry segments such as poultry, dairy and food service packaging, with further geographical expansion into Latin America and Asia.
Octal’s main product is its patented DPET sheet, which it developed and introduced to the market in 2008 as a cutting-edge alternative to the traditional PET sheet. The company also manufactures PET resin for bottles for water, fruit juices and carbonated soft drinks as well as sheet for thermoformed packaging. Non-beverage consumer goods packaged in PET bottles include detergents, soaps, shampoos, cooking oils and condiments. Octal’s resin business has witnessed an increase of 18% of production and sales in the first half of this year when compared to the same period last year.