banking

Bank Muscat inks Facility Agreement with PDO

February 11, 2021

Bank Muscat has signed a Sub-Participation Facility Agreement with Petroleum Development Oman (PDO) to refinance or monetise the existing and future portfolio of home loans that PDO provides to its employees under a housing loan scheme.
The unique financing structure provides an efficient option for PDO to monetise the receivables of this portfolio to generate cash flow for operations and investments.
Speaking on the occasion, Shaikh Waleed K al Hashar, Chief Executive Officer, Bank Muscat, said: “We are happy to strengthen the cooperation between the Bank and Petroleum Development Oman, the leading Oil and Gas Producer in the Sultanate. Under this agreement, while PDO continues to provide its employees housing loans as part of its employee value proposition, it will monetise or refinance the portfolio through the sub-participation facility provided by Bank Muscat.
“While PDO will continue to operationally administer the loans and cater to the needs of its employees under its relevant staff policies, the participation facility will enable it to release working capital tied up in staff loans.”

omanobserver

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