AL Habib Infrastructure has applied for a loan with Sohar International for OMR 3 million. But, the actual funds requirement of AL Habib Infrastructure for the current project is OMR 7 million.

Sohar International lending interest rate

Under debt covenant agreement	3.5 %
Without debt covenant agreement	4.65 %

AL Habib Infrastructure has applied remaining 3 million with National Bank Oman.

National Bank Oman lending interest rate

Under debt covenant agreement	3.25 %
Without debt covenant agreement	4.75 %

If AL Habib Infrastructure signed a debt covenant with Sohar International, then at what interest rate the loan will be granted to AL Habib Infrastructure?

a) 4.75%

b) 4.65%

c) 3.5 %

d) 3.25 %

If AL Habib Infrastructure take the entire 7 million from National Bank Oman, then how much total interest AL Habib Infrastructure have to pay?

a) OMR 332,500

b) OMR 245,000

c) None of these

d) OMR 227,500

Answer rating: 100% (QA)

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