Muscat – Oman and Etihad Rail Company, known as Hafeet Rail, on Wednesday signed bank financing agreements worth $1.5bn (approximately RO577mn) with Omani and Emirati banks, as well as international banks.

The agreements were signed in Abu Dhabi under the patronage of H H Sheikh Theyab bin Mohammed bin Zayed al Nahyan, Chairman of the Board of Directors of Etihad Rail. The signing ceremony took place on the first day of the inaugural edition of the Global Rail, Transport and Infrastructure Exhibition and Conference 2024 in Abu Dhabi, hosted by Etihad Rail, according to an Oman News Agency report.

Standard Chartered Bank, as the lead financial advisor, played a pivotal role in securing the bank financing required to develop the project. First Abu Dhabi Bank also acted as a co-financial advisor. The bank loan to finance the project was obtained from a group of Emirati, Omani, regional, and international banks through conventional and Islamic tranches in both Omani riyals and Emirati dirhams.

A group of banks from Oman that participated in the successful bank financing includes Ahli Bank, Bank Dhofar, Bank Muscat, National Bank of Oman, Oman Arab Bank, Ahli Islamic, Meethaq Islamic Banking, Bank Nizwa, and Alizz Bank Islamic. From the UAE, Abu Dhabi Commercial Bank, Arab Bank, Dubai Commercial Bank, First Abu Dhabi Bank, National Bank of Kuwait, Standard Chartered, Abu Dhabi Islamic Bank, and Ajman Bank also participated.

Oman’s Asyad Group and the UAE’s Etihad Rail hold the largest shareholding in the joint venture company Hafeet Rail.

Eng Abdulrahman al Hatmi, CEO of Asyad Group, said, “The great interest shown by leading banks in both countries to finance the project reflects firm confidence in this strategic investment. The success of Hafeet Rail in securing this bank financing not only enhances the transport and logistics sector but also contributes to stimulating economic growth and enhancing trade activity between the two countries.”

Shadi Malak, CEO of Etihad Rail, pointed out that the success of Hafeet Rail in obtaining bank financing is strong evidence of the broad confidence that this strategic project has enjoyed. “It also enhances the region’s ability to attract investments and confirms its position as a major commercial center and a hub for accessing global markets,” he added.

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