Report: Oman to arrange potential dollar debt sale

Business Reporter –
MUSCAT –
Jan 3: Oman is preparing an international bond sale, according to Bloomberg, citing two people with knowledge of the deal. The move comes as the Sultanate seeks to plug a budget deficit caused by low oil prices.
According to the report, authorities have sent out invitations to banks to arrange the sale of a dollar or Islamic bond. Responses are due this week. An official at the Central Bank of Oman (CBO) said last month that Oman is planning to raise up to $2 billion through bond sales this year.
A fresh sale will be the latest in a series of issues by the non-Opec oil-producing state.
The Sultanate sold $2.5 billion worth of bonds in June last year in its first such sale since 1997 and tapped the bonds for an additional $1.5 billion in September. The country also raised $1 billion from the international loan market in January to help bolster its finances.
Saudi Arabia will raise not more than 450 billion riyals by 2020 to cover the budget deficit while Oman expects a budget deficit of RO 3 billion in 2017. The country will also raise RO 600 million in local debt next year.