Renaissance Village Duqm concludes financing for its expansion | Times of Oman

Renaissance Village Duqm concludes financing for its expansion | Times of Oman

Muscat: Renaissance Village Duqm (RSVD) has successfully concluded the debt and equity raising for its first phase of expansion of OMR31. 7 million. The construction of the first phase of expansion has been completed out of funding from equity, shareholder's bridge funding and internal surplus; and the capacity has increased by 5, 000+ beds taking the total capacity of RSVD to 23, 000+ beds. Shareholders of RSVD have funded 40 per cent of the expansion. In addition to the major shareholder Renaissance Services, other shareholders of RSVD include Royal Court Affairs, Ministry of Defence Pension Fund, Bank Muscat and Al Khonji Holding Group. The debt financing for the expansion has been secured from six leading Omani financial institutions, Bank Muscat, National Bank of Oman, Bank Dhofar, Ahli Bank, Oman Arab Bank and Al Omaniya Financial Services. The key highlights of debt financing include long-term tenure, supportive step-up repayment schedule akin to a bond structure and competitive terms mutually beneficial to the company and financiers. RSVD has also secured the debt portion of the total financing of OMR11 million for the second phase of expansion. The company will proceed with the debt drawdown and equity injection for the second phase only