In a powerful demonstration of domestic financial depth and institutional confidence, Sohar International and the National Bank of Oman (NBO) have successfully concluded a landmark USD 720 million syndicated credit facility for Phoenix Power Company SAOG. The refinancing package supports the long-term operational resilience of the Sur Independent Power Project (IPP), one of the Sultanate’s flagship energy assets.
The syndicated facility directly follows the long-term extension of the Power Purchase Agreement (PPA) between Phoenix Power and the Oman Power and Water Procurement Company (Nama Power and Water Procurement) for an additional 15 years. This extension guarantees steady baseload electricity for Oman’s national power grid through the late 2030s.
Local Banking Capability at Sovereign Scale
Historically, mega-infrastructure projects in the Gulf Cooperation Council required extensive reliance on international syndicated lenders and cross-border export credit agencies. This USD 720 million facility, structured and executed entirely by prominent Omani commercial banks, underscores the financial sophistication, liquidity strength, and underwriting maturity of the Sultanate’s domestic banking sector.
“At Sohar International, we believe our responsibility extends far beyond conventional financial intermediation. It lies in empowering strategic national assets that safeguard Oman’s economic resilience. Financing Phoenix Power channels domestic capital into critical industrial foundations, directly supporting the long-term developmental priorities of Oman Vision 2040.”
— Abdulwahid bin Mohamed Al Murshidi, Chief Executive Officer of Sohar International
Operational Anchor of the National Grid
The Sur Power Plant, operated by Phoenix Power Company SAOG, represents one of the largest combined-cycle gas turbine (CCGT) power generation facilities in the Sultanate. With high thermal efficiency and robust grid-stabilization capabilities, the plant serves as a vital anchor for Oman’s Main Interconnected System (MIS).
The restructuring and refinancing package provides a stable, long-term balance sheet architecture that shields the operational entity from short-term global credit market volatility while ensuring sustained capital investment into predictive maintenance and operational efficiency.
“Transactions of this magnitude demonstrate the pivotal role Omani commercial banks play in funding the foundational architecture of national growth. This USD 720 million facility reaffirms our capacity to structure complex, large-scale financial solutions that enhance energy security and deliver sustained economic value.”
— Polattu Radhakrishnan Anil Kumar, General Manager and Head of Corporate Banking at National Bank of Oman
Strategic Implications for Oman Vision 2040
As Oman advances its national energy transition toward renewables and green hydrogen, maintaining reliable, highly efficient gas-fired baseload generation remains essential for grid equilibrium. By securing long-term private sector capital for key generation assets, the Sultanate reinforces its macroeconomic stability, optimizes public debt obligations, and demonstrates an exemplary framework for public-private partnerships.
