Oman’s international bond issue is “market-conditioned”

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هذه الصفحة متوفرة بهذه اللغة: العربية

20 October 2020

Muscat (WAF): The Omani government has mandated banks for its first international public bond, but no timeline nor size is fixed yet, an official source in the Omani Ministry of Finance told WAF News.

Bloomberg has reported -citing unnamed sources- the Omani government’s appointment of seven banks to manage the issue.

Speaking to WAF News today, the official source said that these banks “are studying the market in light of the current conditions – including the US elections and the recent downgrading of the Sultanate by Standard & Poor’s – before determining the size of the issue”. He added that the issue’s size and time are conditional to favourable terms and at a reasonable cost.

By the end of July 2020, Oman’s deficit was 1.55 billion Omani Rials, and the interest on loans increased by July 2020 by 58.7% amounting to 605.2 million Omani Rials, compared to 381.4 million Omani Rials in July 2019.

The Omani government had announced that it had secured 1.5 billion Omani Rials through bonds, a bridge loan and local Sukuk to fulfil its financial obligations in light of the effects of the Covid-19 pandemic and the drop in oil prices.