Bank Muscat signs an agreement with PDO to refinance its portfolio of mortgage loans to employees



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Muscat: In line with its pioneering role in the provision of banking services and facilities, Bank Muscat, the Sultanate’s main financial services provider, has signed a sub-participation facility agreement with Petroleum Development Oman (PDO) to refinance or monetize the existing and future portfolio of real estate loans that PDO grants to its employees as part of a housing loan.

The unique funding structure provides PDO with an efficient option to monetize the receivables in this portfolio to generate cash flow for operations and investments.

Speaking on the occasion, Sheikh Waleed K. Al Hashar, CEO of Bank Muscat, said: “We are pleased to strengthen cooperation between the Bank and Petroleum Development Oman, the main oil and gas producer in the Sultanate. Under this agreement, while PDO continues to provide home loans to its employees as part of its employee value proposition, it will monetize or refinance the portfolio through the sub-participation facility provided by Bank Muscat. While PDO will continue to operationally administer loans and meet the needs of its employees within the framework of its relevant personnel policies, the participation facility will allow it to free up working capital tied up in personnel loans. “

He added that Bank Muscat has worked with PDO to create an innovative structured solution to meet the objectives of this financing. This shows Bank Muscat’s commitment to meeting the needs of its customers and translates into a translation of the bank’s vision of “Serving You Better, Every Day”.

He thanked the general management of Petroleum Development Oman for their confidence in the services and facilities of Bank Muscat which led to the successful closing of this historic and tailor-made transaction. He also thanked the Central Bank of Oman for its continued support to the bank and the regulatory guidance provided for the transaction.

Bank Muscat, the Sultanate’s leading financial services provider, offers Baituna real estate financing that makes the dream of owning a home come true. The attractive features of Baituna real estate financing include an occupancy period of up to 25 years. Customers can get easy and convenient credit approval throughout the Sultanate at any of the dedicated Baituna sales centers in Qurum, Mabelah, Nizwa, Salalah, Barka, Sur, Saham, Sohar, Ibri, Buraimi and Ibra or in the retail bank branches of the bank.

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