Oman Broadband has signed a series of long-term financing agreements with several banks in the sultanate worth RO171mn to be invested for expansion of its broadband network over a period of 15 years.
These agreements promise more bank finances for extending the coverage of broadband network across all governorates in Oman.
They are in line with the company’s aim to refinance the loan of the Asian Infrastructure Investment Bank (AIIB), besides availing additional financing to support the expansion of fiber optic network across Oman.
The move will help bridge the digital urban/rural divide, which is in line with Oman’s National Broadband Strategy, said ONA.
The long-term investment plan is a mix of traditional and Islamic financing by a number of local banks, including Bank Muscat, Ahli Bank, Sohar International Bank, Bank Dhofar, National Bank of Oman, Sohar Islamic Bank, Ahli Islamic Bank, and Maisarah Islamic Bank.
“The signing of these agreements between the company and several local banks reflects the mutual trust, collaborative efforts, and long-term strategic partnership between both parties,” said Said Abdullah al Mandhari, Head of the Board of Directors at Oman Broadband.
“Through these agreements, we reaffirm our trust in Oman’s economy, and we foresee resilient growth in strengthening plans for digital transformation, and acceleration of its implementation throughout all governorates in Oman.”
Mandhari emphasised that the agreements reflect how confident the financial institutions are in terms of the company’s operational and financial performance, especially after the company managed to complete the first phase of the development plan very effectively and in record time.
Moreover, he pointed out that the agreements reflect the value that the company has achieved and delivered locally, by involving SMEs and Omani competences in implementing its operational plans.
“We extend our thanks to all members of the Oman Broadband family for their effective and outstanding performance in the first phase,” Mandhari said, expressing confidence that the upcoming phase would highlight more achievements.
“We also extend our thanks to the operational departments at each bank – for their continued efforts, flexibility, and professionalism in providing competitive interest rates to complete these agreements for the benefit of the public,” he added.
