Renaissance raises OMR45.3 million debt for Duqm project

11/05/2015 01:25 AST

Renaissance has successfully raised OMR45.3 million worth of debt required to finance its OMR75.5 million-Duqm accommodation project. The project is scheduled to open by mid-2016.

The Duqm project has evoked strong interest in the financial community, as a result of which the long-term debt was significantly oversubscribed. Renaissance kept to its inclusive banking policy and arranged for a group of financial backers to provide the facility together (ahli bank, Al Omaniya Financial Services, BankDhofar, Bank Muscat, Bank Sohar, HSBC Oman, National Bank of Oman and Oman Arab Bank) with whom Renaissance shares a strong and long standing relationship.

Bank Muscat - Investment Banking division acted as the financial advisor to Renaissance for financing the project.

"We are excited about the Duqm accommodation project, where scale and design are coming together to create a unique offering at extremely competitive terms. The success of this financing exercise shows, once again, the strong relationships Renaissance enjoys with investors and lenders, and we are grateful for the support shown by our valued partners," said Vishal Goenka, Group CFO of Renaissance.



An integral part

The project will create the largest permanent accommodation facility in Oman, with fully serviced housing, recreation and catering facilities for over 16,000 people. The accommodation facility itself is an integral part of the government's plan to develop the Duqm Special Economic Zone into a world class investment and logistics hub.

The financial backers were interested in how Renaissance is taking advantage of challenges offered by such a large project: the economies of scale mean the cost is well below that of setting up temporary structures, but a much more comfortable lifestyle is created, with full services offered, from dining to recreation and medical. This is important in itself, but has also been shown to improve productivity.

There is also a sharp focus on efficiency to control costs, as well as careful waste and pollution management that reduces the carbon footprint – Renaissance won the International Green Era Award this year for reducing its carbon emissions.

"This is a landmark project of unparalleled size and scale in-country, which further strengthens Renaissance's leadership position as the largest provider of blue collar accommodation in Oman," Goenka added.

Times of Oman