Oman inks $3.5b loan pact with Chinese institutions

Oman government has signed a $3.55 billion five-year loan agreement with a group of Chinese financial institutions, according to a press statement released by the Ministry of Finance. The senior unsecured loan follows the Sultanate’s $5 billion multi-tranche bond and $2 billion sukuk priced earlier this year. “The transaction witnessed strong interest from the group of leading Chinese banks with the transaction upsized from the initial target of $2 billion to accommodate the interest from the lenders,” said the statement. The strong demand supported the competitive pricing and enabled Oman to upsize the facility. The transaction was self-arranged by the newly established Debt Management Office in the Ministry of Finance. “The transaction demonstrates the continued confidence of international investors in Oman. With this loan, we have successfully completed the financing requirements for the expected 2017 fiscal deficit, and also been able to meet the refinancing needs in relation to some of the loan instalments that fell due during the year,” said Nasser Khamis Al Jashmi, Undersecretary at the Ministry of Finance. The transaction has helped fullfil Sultanate’s key objectives such as complete Government’s external funding requirement for 2017.