The commemorative ceremony was part of a high-level business delegation led by His Excellency Dr. Ali bin Masoud Al Sunaidy, Minister for of Commerce and Industry, Oman, along with representatives from various Public and Private Companies of Oman, which is currently in India as part of the B2B Oman-India Roadshow.
Shadeed Iron & Steel LLC (Jindal Shadeed) is the first Integrated Steel Plant in the Sohar Port Area, Sultanate of Oman. Jindal Shadeed. Originally founded in 2005 by Al Ghaith Holdings PJSC of Abu Dhabi, Jindal Shadeed was acquired by Jindal Steel & Power Limited, India (JSPL) through its 100% subsidiary Jindal Steel & Power (Mauritius) Limited (JSPML) in July 2010.
Speaking at the event Mr. Naveen Jindal, Chairman of Jindal Steel & Power Ltd., said, "We are committed to build a comprehensive steel manufacturing facility in the Sultanate of Oman. Huge infrastructure spending in the Middle East is driving a strong demand for steel and fuelling investment in steel projects. We see great synergy in this tie-up with Bank Muscat which will help us drive our expansion projects in Oman to build one of the largest steel plants in the Middle East region."
Bank Muscat with a consortium of 11 banks has arranged the facility of USD 725 million for Shadeed Iron & Steel. The consortium comprised of leading banks from the Arabian region and India. The consortium includes: Bank Muscat; Qatar National Bank S.A.Q; Qatar National Bank, Oman; National Bank of Oman; Al Khalij Commercial Bank; Bank Dhofar; Bank Sohar; Ahli United Bank Bahrain; Ahli Bank Oman; State Bank of India-Dubai; State Bank of India -Oman.
According to Mr. Ravi Uppal, Managing Director and Group CEO, JSPL, "We foresee a tremendous surge in demand for Iron and Steel in the gulf market. This strategic tie-up is a step forward in our expansion plans for the Arabian Peninsula. Currently, we are producing billets and rounds at the Oman facility and we are on course to set up 1.6 MTPA Rebar Mill, which will be commissioned in the year 2015.
The entire facility was structured and arranged by Bank Muscat SAOG; Bank Muscat is also the Facility Agent, Account Bank and the Security Agent for the facility.
Abdul Razak Ali Issa, Chief Executive, Bank Muscat, whilst thanking the consortium Banks for the successful financial closure of the USD 725 million syndicated facility; said -"Oman has always facilitated a conducive environment for several overseas investors, including Indian investors, to set up projects in the country and this has played a pivotal role in helping Oman to achieve its Vision 2020 of diversifying from Oil as a major source of income to other allied activities such as metals, downstream oil and gas etc."
He added: "Bank Muscat has supported various projects with participation from Indian companies. Going forward, we anticipate there would be many such projects being set up by Indian corporates in Oman and that the B2B Oman-India Roadshow will be an excellent opportunity to further explore mutually beneficial relationships."