The 65% foreign-owned Omani build, own and operate (BOO) power company Al Kamil Power Company (AKPC) has renegotiated with its lenders to restructure a US$82mn term-loan facility.
UK’s International Power, through its wholly-owned subsidiaries, owns 65% in AKPC’s OR9.6mn share capital.
Oman’s largest bank BankMuscat, and Paris-based Société Générale, are the lead arrangers for the restructuring programme.
The restructuring will significantly improve the company’s cashflow. It is believed that all Omani banks have participated in the deal.
Renegotiating terms, according to reliable sources, will include reduced interest margins and amendment in the repayment profile. AKPC’s board has already approved the final structure of the documentation. Once the loan facility is restructured, AKPC’s interest margin is expected to come down drastically. AKPC had posted a net profit of more than OR1.6mn in 2004.
In September 2004 AKPC became the first BOO power company to be listed on the Muscat Securities Market. Located nearly 25km northwest of Al Kamil, AKPC is the first power project fully owned and funded by an independent power producer from outside Oman.
The company entered capital market on July 27, 2004 with an initial public offering (IPO) of 3,368,750 shares at OR1.710 per share aggregating to over OR5.7mn. The IPO had received overwhelming response from the investing public. Through the IPO, AKPC offered 35% of its share capital, held by IPR to the public. The public issue was in line with a contractual commitment made by IPR to the government.
AKPC was formed in 2000, following a successful bid to the government, to build, own and operate a 285MW open gas-fired power plant in the Sharqiyah region, and the power station has been in operation since July 2003.
AKPC has a power purchase agreement with the ministry of housing, electricity and water to run until April 2017. It has also entered into a 15-year natural gas supply agreement with ministry of oil and gas. The promoter IPR is a wholesale power generator with interests in 17 countries and four continents, and owns controls and operates more than 16,000MW of generating capacity worldwide. IPR share is listed on the London and New York Stock Exchanges.